According to ratings firm Moody's, India will continue to be the fastest-growing economy in Asia-Pacific in 2024, building on last year's internal momentum. In a report titled Credit Conditions - Asia-Pacific H2 2024 Credit Outlook, released on June 13, the ratings agency stated that Indonesia, the Philippines, and India led the way in terms of growth in the first half of 2024 and should continue to outperform pre-COVID growth numbers due to rising exports, local demand, and government infrastructure spending.

"India will remain the region's fastest-growing economy, maintaining last year's domestic pace. "We anticipate policy continuity following the general election, as well as a continued focus on infrastructure development and private sector investment," Moody's stated. Stronger portfolio inflows are anticipated in the economies of India and ASEAN, the agency claims, due to attractive valuations and solid corporate credit indicators.

Moody's Ratings estimated last month that the Indian economy will grow by 6.6 percent in the current fiscal year. It stated that the profitability of the non-bank financing businesses (NBFCs) industry will be supported by high loan demand and solid economic development. 

"We expect India's economy to expand 6.6 per cent in the year ended March 2025 (FY25) and 6.2 per cent the following year, and this will lead to robust loan growth at NBFCs, mitigating the impact of rising funding costs on their profitability," stated Moody's Ratings. 

Moody's projection for FY25 GDP growth is comparable with Deloitte's but lower than that of the Reserve Bank of India (RBI) and other organizations. The Indian economy was expected to increase by 7% in the current fiscal year, according to the RBI. The growth rate is projected to be 7.8 percent by Morgan Stanley and S&P Global Ratings, and 7.8 percent by Asian Development Bank (ADB) and Fitch Ratings.