India's GDP growth..!? Moody's changed the forecast again..!

Sowmiya Sriram
India's GDP growth..!? moody's changed the forecast again..!

While the global economy is witnessing a recession, experts expect that it may have an impact on the indian economy as well. In that way, moody's Research Institute has revised its estimate of India's growth rate. moody's has revised its estimate of India's GDP growth from 7.7% to 7% this year. The revision comes as the economy continues to recover. And while inflation is at its peak internationally, central banks continue to increase interest rates. Due to this the interest rate has increased.
This is expected to further impact the economy. This revision by moody's is the second time. It was earlier estimated in May last year that the growth rate could be 8.8% for the current fiscal, which was later revised down to 7.77%. This rate has now been reduced again to 7%. Inflation has been on the rise since the consecutive peaks, which is expected to have a further impact on the economy. Meanwhile, it is expected that there may be an impact on the economy in the next financial year as well.
Moody's forecasts that the economy will grow by 4.8% in 2023 and 6.4% in 2024. Amidst the ongoing global recession, the funding shortfall has persisted. The political tensions prevailing at the international level have further affected the development of the countries of the world. While this has also affected the supply chain, it is expected to have an impact on the overall growth of the year. Thus, it is expected that there may be an impact on the growth of the next year as well. It seems that it may data-face an impact not only in 2023 but also in 2024.
As far as india is concerned, it is doing more imports than exports. Especially as crude oil prices continue to remain high, this further fuels inflation, due to which inflation in india continues to remain high. Experts expect that this may have an impact on growth. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india has increased the repo rate by 190 basis points since last May. The repo rate has reached pre-Corona levels. The Federal Reserve bank of America also raised interest rates by 75 basis points for the fourth consecutive time. This is expected to lead to an increase in interest rates on loans.
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