Team Blitz India
NEW DELHI: Global rating agency Moody’s on February 4 raised India’s GDP growth projection for 2024 calendar year to 6.8 per cent, up from the 6.1 per cent earlier.
The increase in estimate was attributed to India’s robust economic performance in 2023 and diminishing global economic challenges, reported PTI, citing the Moody’s report.
Surpassing the analysts’ expectations of 6.6 per cent, India’s economy grew 8.4 per cent during the October-December quarter. Moody’s attributed this strong growth to the government’s capital spending and vigorous manufacturing activity.
However, the gross value added (GVA), which is a measure of the total value of goods and services produced in the economy and excludes indirect taxes and subsidies, grew 6.5 per cent, prompting economists to say that GDP data overstated growth trends.
“The wide divergence between the GVA and GDP in the October-December quarter was mainly due to a sharp fall in subsidies in that quarter largely because of lower payouts on fertilizer subsidies like Urea,” reported Reuters, citing a senior government official.
