Moody's forecasts 6.6% growth for Indian economy in FY25
ECONOMY & POLICY

Moody's forecasts 6.6% growth for Indian economy in FY25

Moody's Ratings indicated that the Indian economy is projected to grow by 6.6 percent in the current fiscal year. It noted that strong credit demand and robust economic growth would bolster the profitability of the non-bank finance companies (NBFCs) sector.

Moody's Ratings anticipated that India's economy would expand by 6.6 percent in the year ending March 2025 (FY25) and by 6.2 percent in the subsequent year. This growth is expected to lead to substantial loan growth at NBFCs, offsetting the effects of rising funding costs on their profitability.

The Indian economy was estimated to have grown by 8 percent in the 2023-24 fiscal year.

Moody's stated that despite rising funding costs for NBFCs in India, strong credit demand driven by the country's robust economic growth would support the sector's profitability. Additionally, favourable economic conditions were expected to help NBFCs maintain their asset quality, even as increasing interest rates raise the debt burdens of their customers.

Regarding India's growth prediction, Moody's forecast for FY25 GDP growth was lower than the projections made by the Reserve Bank of India (RBI) and other agencies, but aligned with Deloitte's forecast.

The RBI had projected a 7 percent growth rate for the Indian economy in the current fiscal year. Both the Asian Development Bank (ADB) and Fitch Ratings had estimated a 7 percent growth, while S&P Global Ratings and Morgan Stanley had expected a growth rate of 6.8 percent.

Moody's Ratings indicated that the Indian economy is projected to grow by 6.6 percent in the current fiscal year. It noted that strong credit demand and robust economic growth would bolster the profitability of the non-bank finance companies (NBFCs) sector. Moody's Ratings anticipated that India's economy would expand by 6.6 percent in the year ending March 2025 (FY25) and by 6.2 percent in the subsequent year. This growth is expected to lead to substantial loan growth at NBFCs, offsetting the effects of rising funding costs on their profitability. The Indian economy was estimated to have grown by 8 percent in the 2023-24 fiscal year. Moody's stated that despite rising funding costs for NBFCs in India, strong credit demand driven by the country's robust economic growth would support the sector's profitability. Additionally, favourable economic conditions were expected to help NBFCs maintain their asset quality, even as increasing interest rates raise the debt burdens of their customers. Regarding India's growth prediction, Moody's forecast for FY25 GDP growth was lower than the projections made by the Reserve Bank of India (RBI) and other agencies, but aligned with Deloitte's forecast. The RBI had projected a 7 percent growth rate for the Indian economy in the current fiscal year. Both the Asian Development Bank (ADB) and Fitch Ratings had estimated a 7 percent growth, while S&P Global Ratings and Morgan Stanley had expected a growth rate of 6.8 percent.

Next Story
Infrastructure Transport

NHAI to Build 6-Lane Agra-Gwalior Expressway on BOT (Toll) Mode

To enhance connectivity between the tourism hubs of Agra and Gwalior, National Highways Authority of India (NHAI) will develop 88 km long 6-lane access controlled Agra-Gwalior Greenfield Expressway (NH-719D). NHAI, today signed a concession agreement for the implementation of project with GR Infraprojects, in presence of NHAI Chairman, Santosh Kumar Yadav and senior officials of NHAI and the Concessionaire. The Agra-Gwalior Greenfield Expressway will start from Deori village in Agra and terminate at Susera village in Gwalior. The project shall be developed at a Total Capital Cost of Rs 46.13 b..

Next Story
Infrastructure Transport

Cabinet Nods 166.8-km NH-6 Greenfield Corridor on HAM Mode

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the proposal for Development, Maintenance and Management of 4-lane Greenfield Access Controlled 166.80 km of National Highway No. 06 from Mawlyngkhung (near Shillong) in Meghalaya to Panchgram (near Silchar) in Assam on Hybrid Annuity Mode as an access controlled greenfield High-Speed Corridor at a total capital cost of Rs 228.64 billion. The project length of 166.80 km lies in Meghalaya (144.80 km) and Assam (22.00 km). The proposed Greenfield high-speed corridor will improve the service level ..

Next Story
Infrastructure Urban

Commercial Ops Begin at Multi-Modal Logistics Park in Nagpur

Under the PM Gati Shakti initiative of Prime Minister with the aim to provide seamless and efficient connectivity for the movement of people, goods and services across various modes of transport, thereby enhancing last-mile connectivity and reducing travel time, and under the guidance of Union Minister of Road Transport and Highways, Nitin Gadkari, the Multi Modal Logistics Park, Nagpur (MMLP Nagpur) at Sindi, near Wardha commenced its commercial operations with a goal to establish a faster link. The MMLP Nagpur established by National Highway Logistics Management (NHLML), a 100 per cent own..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?