After the Bharatiya Janata Party led National Democratic Alliance (NDA) getting majority in the Lok Sabha, now different kinds of speculations are being made regarding economic reforms. Meanwhile, America’s rating agency Moody’s Ratings has said that the economy and fiscal reforms may be delayed in the long term. This is likely to impact efforts to bring fiscal deficit under control.
What did the rating agency say
Moody’s said – We expect policy continuity, particularly on infra spending, to support strong economic growth in line with the budgetary emphasis on promoting domestic manufacturing. The agency said the NDA’s victory by a relatively narrow margin, coupled with the BJP losing its absolute majority in Parliament, could delay far-reaching economic and fiscal reforms. Moody’s said that regarding India’s economic strength, our assessment is that the real GDP growth rate will be around seven percent between the financial year 2023-24 to 2025-26.
Fastest economy in G-20
Moody’s estimates India will grow faster than all other G-20 economies through fiscal 2025-26, but the short-term economic pace masks structural weaknesses that pose risks to long-term growth potential. Is.
Let us tell you that under the leadership of Prime Minister Narendra Modi, BJP lost its majority for the first time since 2014 and could get only 240 seats out of 543 seats in the Lok Sabha. It plans to form a government with other parties of the National Democratic Alliance (NDA), which won 52 seats. With this the alliance gets a majority of 292 seats.
estimates on gdp
Recently, Moody’s Ratings has estimated India’s growth rate to be 6.8 percent in 2024 and 6.5 percent in 2025. India’s real GDP (gross domestic product) was expected to grow by 7.7 percent in the year 2023, while the growth rate in 2022 was 6.5 percent.
