Moody’s Investors Service said on Tuesday that the trend of gradual fiscal consolidation remains intact for India and that going forward, the country will see strong performance on revenue and debt stabilization. Moody’s Investors Service Senior Vice President Christian de Guzman said India’s “Baa3” sovereign rating balances its relatively high economic growth strength and weakness in one of the most indebted emerging market sovereigns. . The health of the country’s financial system is reflected in the deleveraging of Indian companies.

“We expect India to be the fastest growing G-20 economy next year… (but) high inflation poses a downside risk to India’s growth as households and businesses have less purchasing power,” Guzman said at a virtual Moody’s event. ‘Sovereign deep dive’.

Moody’s earlier this month cut India’s growth projection for 2022 to 7% from 7.7% forecast earlier. He expects growth to slow to 4.8% in 2023 and then pick up to around 6.4% in 2024. India’s economy grew by 8.5% in 2021.

It predicted that GDP growth for G-20 economies would slow to 1.3% in 2023, significantly lower than its previous estimate of 2.1%. Guzman said further improvement in the fiscal situation and a faster-than-expected pace of fiscal consolidation leading to substantial debt reduction would result in positive pressure on India’s rating.