The upgrading of Moody’s GDP prediction and India’s addition to the Bloomberg bond index have contributed to the country’s increasing significance in the world economy.
The global ratings agency Moody’s increased India’s GDP growth estimate for CY24 earlier this week from 6.1 percent to 6.8% percent.
India FAR bonds have been included to Bloomberg’s Emerging Market (EM) Local Currency Government Index, the company announced on Tuesday.
Michael R. Bloomberg, the founder of Bloomberg LP, stated that “this is an important marker in the development of India’s financial markets and a reflection of India’s growing importance in the global economy.”
“Bloomberg is committed to bolstering India’s continued emergence as a global financial center by connecting more investors to India, as it promises to be one of the most significant economic developments of this decade,” the speaker stated.
Following JP Morgan’s decision to include India in its Emerging Market Bond Index, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that Bloomberg’s inclusion of Indian bonds in the Bloomberg Emerging Market Index is a vote of confidence for the Indian economy.
It is anticipated that the addition of India to the Bloomberg Bond Index will draw investments totaling more than $5 billion.
International financial institutions have been discussing India’s robust growth more and more.
“India has many beautiful places. The chief economist of DBS Group Research Taimur Baig and senior economist Nathan Chow wrote in a note that “there are plenty of well-discussed motivating factors for global investors to look at India favorably, from geostrategic to demographics.”
Additionally, social welfare has grown, consumer confidence has increased, physical and electronic home infrastructure has greatly improved, and asset markets are robust.
The report stated that while the services surplus balances out the majority of the trade deficit, external balances, which have historically been vulnerable to erratic investment flows and sudden changes in the world energy supply, are starting to improve.
Strong industrial performance supported by the government’s “Make in India” initiative and support for infrastructure development drove the Indian economy’s 8.4% growth in Q3FY24 compared to Q3FY23, according to brokerage company Prabhudas Lilladher.
India is expected to grow by 7.6 percent in FY24, according to government predictions, down from growth of 7% in FY23. We think that pro-growth policies, rising domestic demand, government spending, and better capacity utilization by private companies would keep India’s economy growing at the fastest rate in the world.
