Moody’s Analytics has projected India’s economy will expand 6.1 per cent in 2024, lower than the 7.7 per cent growth clocked in 2023.

Output in India remains 4 per cent lower than it would have been without the Covid pandemic and its various aftershocks — from supply snags to military conflicts abroad.

“Economies in South and Southeast Asia will see some of the strongest output gains this year, but their performance is flattered by a delayed post-pandemic rebound. We expect India’s GDP to grow 6.1 per cent in 2024 after 7.7 per cent last year,” Moody’s Analytics said on Friday.

In its report titled ‘APAC Outlook: Listening Through the Noise’, Moody’s Analytics said the region overall is doing better than other parts of the world. The APAC (Asia Pacific) economy will grow 3.8 per cent this year, which compares with a growth of 2.5 per cent for the world economy, it said.

Moody’s Analytics said looking at GDP relative to its trajectory before the pandemic shows that India and Southeast Asia have seen some of the largest output losses worldwide and are only beginning to recover.

“Inflation in India is at the opposite extreme, with recent consumer price inflation rates hovering around 5 per cent, close to the upper end of the RBIs target range.”