Moody’s pegs Indian economy’s growth for FY25 at 6.6 percent
ECONOMY & POLICY

Moody’s pegs Indian economy’s growth for FY25 at 6.6 percent

Moody’s Ratings pegged growth of the Indian economy at 6.6 per cent in the current fiscal year. It said strong credit demand, coupled with the robust economic growth will support the non-bank finance companies (NBFCs) sector’s profitability. Moody's Ratings said, we expect India's economy to expand 6.6 per cent in the year ended March 2025 (FY25) and 6.2 per cent the following year and this will lead to robust loan growth at NBFCs, mitigating the impact of rising funding costs on their profitability.

Funding costs for non-bank finance companies (NBFCs) in India are rising but strong credit demand fuelled by the country's robust economic growth will support the sector's profitability. Also, robust economic conditions will help them preserve their asset quality even as rises in interest rates increase the debt burdens of their customers, it added. Moody’s FY25 GDP growth predictions are lower than the Reserve Bank of India’s (RBI’s), as well as other agencies but is at par with Deloitte’s forecast. The RBI had projected a growth of 7 per cent in the current fiscal for the Indian economy.

Asian Development Bank (ADB) and Fitch Ratings estimated growth at 7 per cent each while S&P Global Ratings and Morgan Stanley expect the growth rate to be at 6.8 percent. However, Deloitte India estimates the country’s GDP to grow at 6.6 per cent in the current fiscal, driven by consumption expenditure, exports rebound and capital flows. However, it also flagged concerns around inflation and geopolitical uncertainties.

Moody's Ratings has projected a growth of about 15 per cent in loans at NBFCs over the next 12 to 18 months.

Moody’s Ratings pegged growth of the Indian economy at 6.6 per cent in the current fiscal year. It said strong credit demand, coupled with the robust economic growth will support the non-bank finance companies (NBFCs) sector’s profitability. Moody's Ratings said, we expect India's economy to expand 6.6 per cent in the year ended March 2025 (FY25) and 6.2 per cent the following year and this will lead to robust loan growth at NBFCs, mitigating the impact of rising funding costs on their profitability.Funding costs for non-bank finance companies (NBFCs) in India are rising but strong credit demand fuelled by the country's robust economic growth will support the sector's profitability. Also, robust economic conditions will help them preserve their asset quality even as rises in interest rates increase the debt burdens of their customers, it added. Moody’s FY25 GDP growth predictions are lower than the Reserve Bank of India’s (RBI’s), as well as other agencies but is at par with Deloitte’s forecast. The RBI had projected a growth of 7 per cent in the current fiscal for the Indian economy.Asian Development Bank (ADB) and Fitch Ratings estimated growth at 7 per cent each while S&P Global Ratings and Morgan Stanley expect the growth rate to be at 6.8 percent. However, Deloitte India estimates the country’s GDP to grow at 6.6 per cent in the current fiscal, driven by consumption expenditure, exports rebound and capital flows. However, it also flagged concerns around inflation and geopolitical uncertainties.Moody's Ratings has projected a growth of about 15 per cent in loans at NBFCs over the next 12 to 18 months.

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Next Story
Infrastructure Transport

Saarstahl Rail to Supply Tracks for Bengaluru Suburban Rail Project

Rail Infrastructure Development Company Karnataka Limited (K-RIDE) has identified Saarstahl Rail as the lowest bidder for the track supply contract in the Bangalore Suburban Railway Project. The selected contractor will be responsible for supplying 60E1 (UIC 60), 1080 HH Grade rails in accordance with IRS-T-12-2009 standards (including all amendments and correction slips) for two specific sections: Corridor 2, from Baiyappanahalli to Chikkabanavara, and Corridor 4, between Heelalige and Rajankunte.The tender for this supply contract, which includes a completion deadline of 365 days, was issued..

Next Story
Infrastructure Transport

Railways Unveils Major Reforms to Improve Train Controller System

In a major initiative to enhance railway safety and efficiency, the Ministry of Railways has introduced a series of reforms aimed at improving the functioning and working conditions of train controllers. The measures focus on strengthening domain expertise, ensuring performance accountability, and addressing the high-stress nature of the job.Under the new guidelines, train controllers will be required to serve a minimum of three years in the control office to build sufficient operational knowledge. Only experienced and high-performing traffic inspectors and station masters with strong service ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?