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

Solar, Wind Bolster Thermal Power Amid Record Demand

This summer, solar and wind energy have significantly aided thermal power in meeting India's record power demand. On May 30, 2024, renewables provided 15% of the total power, with peak demand reaching 250 GW. The Ministry of Power highlighted the crucial role of solar and wind energy in meeting this demand during specific hours. Thermal power contributed 176 GW, with coal being the primary source, supplying 68% of the total power. South and North India were major contributors to renewable energy, with solar generating 421.19 MU, led by Rajasthan, Gujarat, and Karnataka. Wind energy generated..

Next Story
Infrastructure Urban

India Leads Indo-Pacific Economic Pact Signing

India, along with the United States and twelve other nations, has signed a significant economic pact aimed at bolstering cooperation and development across the Indo-Pacific region. This pact, signed by leaders from these countries, marks a crucial step towards strengthening economic ties and fostering regional stability. The agreement focuses on enhancing trade relations, promoting sustainable development initiatives, and addressing shared challenges such as climate change and infrastructure development. Key areas of collaboration include technology transfer, investment facilitation, and stra..

Next Story
Infrastructure Energy

Adani Commits $1 Billion to Sri Lankan Wind Projects

Adani Group has announced plans to invest over $1 billion in wind energy projects in Sri Lanka, marking a substantial commitment to bolster the country's renewable energy sector. This investment underscores Adani's strategic focus on expanding its presence in renewable energy across international markets. The proposed wind projects aim to enhance Sri Lanka's energy infrastructure, contributing to sustainable development goals by increasing clean energy capacity. Adani's initiative is expected to create employment opportunities and stimulate economic growth in Sri Lanka, while also fostering t..

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram