Moody's Downgrades India's Economic Growth Forecast for FY25
| Aspect | Detail |
|---|---|
| Why in News | Moody's downgrades India's economic growth forecast for FY25 to 7% from 8.2% in FY24 due to global and domestic economic slowdowns. |
| Revised Growth Forecast | Moody's has revised India's GDP growth for FY25 to 7%, down from 8.2% in FY24, reflecting a slowdown in key sectors and overall economic conditions. |
| India's GDP Per Capita (PPP) | India's GDP per capita increased by 11% year-on-year to $10,233 in FY 2023, highlighting improvement in the standard of living. |
| Comparison with Other Economic Bodies | - FICCI revised its FY 2024-25 GDP growth forecast to 6.4% from 7%. |
| - ADB lowered its FY 2024 growth forecast to 6.5%, citing slower industrial growth and weaker government spending. | |
| Performance in Q2 FY25 | - Q2 GDP growth slowed to 5.4%. |
| - Industrial output grew by just 3.6% year-on-year, while agriculture and services sectors grew at 3.5% and 7.1%, respectively. | |
| Geopolitical and Weather Challenges | - Geopolitical uncertainties and global trade disruptions are affecting exports and the broader economy. |
| - Adverse weather conditions, including unseasonal rains and droughts, are impacting agriculture productivity. | |
| Impact of Monetary Policy | - Tight monetary policies, including interest rate hikes to control inflation, have led to lower private investment and housing demand. |