India’s Increasing Influence in the Global Economy

New Delhi, March 6 (IANS) – Moody’s upgrading India’s GDP forecast and Bloomberg’s inclusion of Indian bonds in the Bloomberg Emerging Market Local Currency Government Index have underscored India’s increasing significance in the global economy.

Moody’s recently revised India’s GDP growth projection for CY24 to 6.8 per cent, up from the earlier forecast of 6.1 per cent. Meanwhile, Bloomberg announced the inclusion of India FAR bonds in its EM Local Currency Government Index, a move praised by Michael R. Bloomberg for showcasing India’s rising economic importance.

V.K. Vijayakumar of Geojit Financial Services commended Bloomberg’s decision as a vote of confidence in the Indian economy, following JP Morgan’s similar move. The inclusion in the Bloomberg Bond Index is anticipated to attract investments exceeding $5 billion, reflecting global financial institutions’ growing interest in India’s growth prospects.

DBS Group Research analysts Taimur Baig and Nathan Chow highlighted India’s favorable position for investors, citing improvements in infrastructure, social welfare, consumer confidence, and asset markets. They noted positive shifts in external balances, supported by a services surplus offsetting the trade deficit.

The Indian economy displayed robust growth of 8.4 per cent in Q3FY24, a significant increase from the previous year. Fueled by strong industrial performance and government initiatives like ‘Make in India,’ the economy is poised for further growth. Prabhudas Lilladher brokerage firm predicts India’s GDP to grow by 7.6 per cent in FY24, making it the fastest-growing economy globally.

India’s economic outlook remains positive, driven by pro-growth policies, recovering domestic demand, government spending, and increased capacity utilization in private firms. With global recognition and increasing investments, India’s position in the global economy continues to strengthen, promising a bright future for the country’s economy.