February 24, 2022
For FY23, Moody’s has maintained its growth forecast for India at 5.5%.
Brent crude oil prices crossed US$105 a barrel during the intratrade day, last week, which is the highest since 2014, due to Russia’s attack on Ukraine.
The agency also elevated it’s growth projections to 8.4% for the upcoming financial year from 1st of April (from 7.9% earlier) to 6.5% for FY24.
With Covid-19 restrictions easing down, India is on it’s path to recovery, as per Moody’s.
Last week, global ratings agency Moody’s revised its growth estimate for India to 9.5% for FY 2022 from 7% as estimated initially. However, it flagged elevated oil prices and supply disruptions as having had a massive impact on growth. For FY23, it maintained its growth forecast for India at 5.5%.
The agency also elevated it’s growth projections to 8.4% for the upcoming financial year from 1st of April (from 7.9% earlier) to 6.5% for FY24. In the case of many other countries as well. India is lagging behind in contact-intensive services sectors recovery, however, there’s still hope that the recovery will pick up as and when Omicron subsides, stated Moody’s.
With Covid-19 restrictions easing down, India is on it’s path to recovery, as per Moody’s. With about 36% increase in allocation to capital expenditure and 2.9% of GDP, the FY23 budget is focused on growing the economy. The government is optimistic that it will crowd in private investment, also since RBI hasn’t changed the interest rates as per it’s February Meeting, the monetary policy of the government is supportive, according to Moody’s.