Moody's on India: Rating agency Moody's maintained the outlook for the government of India to be stable. The long-term and short-term ratings of the government of India is pegged at Baa3 and P-3, respectively. The stable outlook incorporates the likelihood that India's fiscal metrics will continue to gradually improve amid robust growth prospects compared with peers.

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Maintaining a stable outlook, Moody's noted India balances its large and diversified economy with high growth potential, a relatively sound external position, and a stable domestic financing base for government debt against high general government debt, weak debt affordability and low per capita income.

A stronger and more stable economy has emerged from the pandemic, said Moody's although it does not expect a material reduction in debt amid gradual fiscal consolidation over the next year. It also asserted that India benefited from infrastructure development, digitalization and the rehabilitation of the financial system.

Following a series of relatively strong growth numbers in the first three quarters of the financial year 2023-24, Moody's has revised India's real GDP growth projection to 8 per cent for the full year. Moody's projects economic growth to be sustained at well above 6 per cent over the next two fiscal years, although there are upside risks to the projections.

Moody's Ratings has completed a periodic review of the ratings of India and other ratings that are associated. The review was conducted through a rating committee held on April 4, 2024.
In a report released by Moody's in March, the global rating agency said it expected India's economic growth in 2024-25 growth above that of other emerging market G20 peers, given its domestic demand managed to sustain momentum.

India's GDP grew at a massive 8.4 per cent during the October-December quarter of the current financial year 2023-24 and the country continued to remain the fastest-growing major economy. The Indian economy grew 7.8 per cent and 7.6 per cent during the preceding two quarters - April-June and July-September.

India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.

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