India is Going to be the Fastest-growing G-20 Economy in Coming Years: Moody’s

The GDP of India touched USD 3.5 trillion in 2022 and it is going to be the fastest-growing G-20 Economy in the coming years. Moody’s also said that reform and policy barriers might hamper investment. The sources say that the US-based rating agency talked about bureaucracy that it can slow down the approval process in obtaining licences, building businesses, and prolonging project gestation.

Moody's Investors Service said “India's higher bureaucracy in decision-making will reduce its attractiveness as a destination for Foreign Direct Investment (FDI), especially when competing with other developing economies in the region, such as Indonesia and Vietnam. While demand across the manufacturing and infrastructure sectors will grow 3-12 per cent annually for the rest of the decade, India's capacity will still rank well behind China's by 2030."

This Government infrastructure spending will definitely support steel and cement and India's net-zero commitment will invest a great amount in Renewable energy. "Lack of certainty around the amount of time needed for land acquisition approvals, regulatory clearances, obtaining licenses and setting up businesses can materially prolong project gestation. Furthermore, India's limited multilateral liberalisation with respect to regional trade agreements will also weigh on foreign investments in the country," it said.

As per the latest World Economic Situation and Prospects report which was released by United Nations, the economy of India is going to spend by 5.8 per cent in 2023. Moody's also said that certain measures to be taken, such as raising agricultural sector efficiency, investment in infrastructure, etc for economic growth.

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