India will achieve 7.2% growth in 2024 – Moody’s

Delhi Delhi. Moody’s Ratings on Friday projected 7.2 percent GDP growth for India in 2024. Ratings says the Indian economy is in good shape, but the RBI may maintain a relatively tight monetary policy this year due to inflation risks. Moody’s said that despite the near-term uptick, retail inflation should ease in line with the Reserve Bank’s target in the coming months, as food prices will ease amid higher sowing and adequate foodgrain buffer stocks. Retail inflation rose to a 14-month high of 6.21, crossing the RBI’s upper tolerable limit, led by a sharp jump in vegetable prices. The agency said the disinflation trajectory remains volatile due to sporadic food price pressures. “Potential risks to inflation from rising geopolitical tensions and weather extremes underscore the RBI’s cautious approach to policy easing. Although the central bank changed its monetary policy stance to neutral in October by keeping the repo rate steady at 6.5 per cent, it will maintain relatively tight monetary policy settings next year given healthy growth dynamics and inflation risks,” Moody’s said.