India Fastest-Growing G-20 Economy

India is making remarkable strides in becoming a top economy. According to Moody’s Investors Service, India’s 2024 GDP growth estimate has been raised to 6.8% from the earlier forecast of 6.1% in November 2023. This after the Indian economy grew by 8.4% during the October-December quarter of FY24 driven by construction and the manufacturing sector. This upward revision is attributed to capital spending by the government and strong manufacturing activity. Moody’s also predicts that India’s GDP growth will be 6.4% in 2025. The government’s capital spending initiatives and robust manufacturing activity have significantly contributed to these favourable outcomes. Additionally, policy continuity after the general election and a continued focus on infrastructure development are expected to sustain India’s economic growth. Despite inflation being above the 4% target, policy easing is not anticipated in the near future1.India’s economic soar is indeed impressive, positioning it as the world’s fastest-growing major economy, outshining even China in terms of growth projections.