Moody's increases India's 2023 growth forecast to 5.5% from 4.8%

Moody's Investors Service has raised India's GDP growth forecast from 4.8 per cent in Novemember last year to 5.5%. This, on the back of a sharp increase in capital expenditure in the Budget and a resilient economic momentum.

It however revised downwards India's growth estimate for 2022 to 6.8 per cent from 7 per cent pegged in November last year.

In its February update to Global Macro Outlook 2023-24, Moody's raised the baseline 2023 real growth projections "meaningfully" for several G20 economies, including the US, Canada, the Euro area, India, Russia, Mexico, and Turkiye, accounting for a stronger end to 2022.

Moody's said economic momentum in a number of large emerging market countries, including India, has proved more resilient to last year's tightening in the global and domestic financial environment than it had anticipated.