India proved its mettle, growth rate is fastest!
Rating agency moody's said on tuesday that India's economy will grow at a rate of 6.5 percent this year (2024-25), which will be the highest among the developed and emerging countries of the G-20. Steps like tax exemption and RBI's interest rate cut will help in this. Also, india will be able to attract foreign capital and face the challenges of the global market.
What did moody's say?
Rating agency moody's praised india on two major issues. The first issue in this is the GDP growth rate in 2024-25. According to moody's, India's economy will grow at the rate of 6.5 percent this year. However, last year this rate was 6.7 percent. The second issue is inflation. According to moody's, inflation is expected to be 4.5 percent on average this year. Whereas last year it was 4.9 percent.
Why is india strong?
The government has given a big relaxation in the income tax slab. Now there is no tax on income up to 12 lakhs in India.
RBI cut the rate in february (6.25 percent) and another cut is expected on 9 April.
Foreign investors' trust in india has increased. Because India's external debt is decreasing and forex reserves are getting stronger.
What is the effect of American policy?
According to moody's, America's policies can lead to capital flow in emerging markets (EMs), but big countries like india and brazil have the power to avoid this. The main reasons behind this are a large domestic market, stable monetary policy and adequate foreign exchange reserves. With the help of these, the indian market can stand tall against America's tariff policies.
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