India’s Economic Growth Forecast at 6.1% in 2024 Amidst Regional Recovery


New Delhi: The latest economic forecasts present a nuanced picture of India’s financial trajectory. According to Moody’s Analytics, India’s Gross Domestic Product (GDP) is set to expand by 6.1 percent in the year 2024. While this figure represents a robust growth, it is a deceleration from the previous year’s impressive 7.7 percent surge.

The report, titled “APAC Outlook: Listening Through the Noise,” highlights that despite the slower pace, India’s economy is still outperforming many of its global counterparts. The economies of South and Southeast Asia are expected to witness the most substantial output gains. However, these regions are grappling with the lingering effects of the global pandemic, which has delayed their full economic recovery.

Regional Performance and Global Context

The Asia Pacific (APAC) region as a whole is projected to grow at a rate of 3.8 percent this year, outpacing the global economy’s anticipated growth of 2.5 percent. India, along with Southeast Asia, has experienced significant output losses when measured against pre-pandemic levels. Yet, there is optimism as these economies are now on a path to recovery.


Inflation Outlook and Monetary Policy

The inflationary landscape, particularly for China and India, remains clouded with uncertainty. The Reserve Bank of India (RBI) has recently expressed concerns over the volatility of food prices and their potential impact on the overall inflation rate. For the fiscal year 2024-25, the RBI maintains an inflation estimate of 4.5 percent. Additionally, geopolitical tensions continue to disrupt commodity prices and supply chains, adding another layer of complexity to the economic forecast.

As India navigates these challenges, the nation’s economic resilience and strategic policy responses will be crucial in sustaining growth and stability in the dynamic APAC region.