Big news has arrived for Modi government, India is ahead of US and China in this list!

Good news has come from credit ratings and research agency Moody’s for India’s economy. In fact, Moody’s has increased India’s growth rate forecast for 2024 and 2025. Moody’s has increased the real GDP growth forecast from 6.8 percent to 7.2 percent in 2024, while India’s growth rate forecast for 2025 has been increased from 6.4 percent to 6.6 percent. According to Moody’s, recovery in rural demand is being seen in 2024 due to better than normal monsoon and improvement in agricultural products.

India’s growth rate will increase the fastest!
India is already the fastest growing economy in the world. If we look at the IMF estimates, then among the top 10 fastest growing economies, after India, China is second with a growth forecast of 5.4 percent, Indonesia is third with a growth rate forecast of 5 percent, and Turkey is fourth with a potential growth rate of 3.6 percent.

Russia is at the fifth position with a growth rate of 3.2 percent, Poland is at the sixth position with a growth rate of 3.1 percent, the US is at the seventh position with a growth rate of 2.6 percent, South Korea is at the eighth position with a growth rate of 2.5 percent and Spain is at the ninth position with a possible growth rate of 2.4 percent. Mexico is at the tenth position in this list whose growth is estimated to be 2.2 percent this year.

Estimates of a reduction in inflation
According to the IMF’s July Outlook, India will continue to have the fastest growing growth rate in the world not only this year but also next year. At the same time, inflation, which proved to be the biggest threat to India’s growth rate, is now showing signs of relief. Moody’s has reduced the retail inflation forecast for 2024 from 5.2 percent to 5 percent, while the retail inflation forecast for 2025 has been maintained at 4.8 percent.

Moody’s also says that when retail inflation reaches close to the target of 4 percent, household consumption in the country may increase which will prove to be a big booster dose for India’s consumption-based economy. At the same time, Fitch has also maintained India’s rating ‘BBB-‘ and described the outlook as stable. According to Fitch, India’s growth has been helped by private investment, strong service sector and infrastructure spending.