India To Lead Asia-Pacific Growth In 2024, Says Moody's Report

India is expected to continue as the fastest-growing economy in the Asia-Pacific region in 2024, maintaining the domestically fueled momentum from the previous year, Moody's Ratings announced on Thursday.

According to the report "Credit Conditions–Asia-Pacific H2 2024 Credit Outlook" by Moody's Ratings, Indonesia, the Philippines, and India have been leading in growth during the first half of 2024. They are expected to continue surpassing pre-Covid growth figures due to increasing exports, local demand, and government investment in infrastructure.

"India will remain the region's fastest-growing economy, sustaining last year's domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment," it said.

Moody's has indicated that India and ASEAN economies are likely to experience stronger portfolio inflows due to robust corporate credit metrics and attractive valuations.

Last month, the rating agency projected India to grow 6.8% in the current year, followed by 6.5% in 2025, on the back of strong, economic expansion along with post-election policy continuity.

India's real GDP grew 7.7% in 2023, up from 6.5% in 2022, driven by robust capital spending by the government and strong manufacturing activity.

(With Inputs From PTI)