India GDP growth to slow to 6.1% in CY24: Moody’s arm
Moody's Analytics expects India's GDP to grow at 6.1% in calendar year 2024 (CY24), decelerating sharply from 7.7% in CY23, hurt by a slow recovery from the pandemic and its various aftershocks, and as geopolitical conflicts snap supply chains. Despite the slowdown, India will still remain the fastest-growing major economy in the world. It said that a look at GDP relative to its trajectory before the pandemic reveals that India and southeast Asia have seen some of the largest output losses worldwide due to the pandemic and are only beginning to recover.
It added that economies in south and southeast Asia will see some of the strongest output gains this year.
"The performance of India and Asean economies is flattered by a delayed post-pandemic rebound," Moody's Analytics said in a report titled Apac Outlook: Listening Through the Noise. The report highlighted that the Asia Pacific (Apac) region overall is doing better than other parts of the world, with the Apac economy slated to grow at 3.8% in 2024, compared to a 2.5% pace for the world economy during the calendar year. Tensions in West Asia ratcheted up after Iran vowed retaliation alleging Israel attacked its consulate in Syria on 1 April that killed two commanders of its Islamic Revolutionary Guards Corps and five others. Israel continues to wage a war on Gaza, after being attacked by Hamas militants in
October last year, even as Russia and Ukraine remain at war.
Earlier this week, the Asian Development Bank (ADB) raised India’s GDP growth forecast for FY25 to 7%, from its previous projection of 6.7%, lifted by robust public and private investments and a strong services sector.
Last month, Fitch Ratings also raised India’s growth forecast for the ongoing financial year to 7% from 6.5%, projecting investment to be a significant driver of growth. During the October-December quarter of FY24, the Indian economy surprised with a precipitous 8.4% growth, shrugging off fears of a slowdown, as manufacturing, electricity and construction continued to fire on all cylinders. This rapid growth prompted a revision by India's National Statistical Office in the GDP growth estimate for FY24 to 7.6%, from 7.3% it had projected earlier.
The Reserve Bank of India expects the economy to expand at 7% in FY24, while the International Monetary Fund has pegged GDP growth for the fiscal year ended March at 6.7%. shared exclusively with explored the insights of company leadership on climate change, its integration with business strategies, and the potential role of the boards of directors.
The participating companies comprised some of the largest public and private Indian corporations, as well as multinationals from sectors including banking, financial services, and insurance, oil and gas, fast-moving consumer goods, and industrial products.
The report, citing the recommendations of the chairpersons surveyed, said that incentivizing environmental, social, and governance (ESG) objectives within corporate boardrooms is pivotal to effectively addressing climate change.
It also underscored the importance of commitment by the leadership, particularly from the CEO and the executive team. “CEO compensation should have one component related to ESG performance,” it said. Considering that companies are now defining their net-zero strategies, a key aspect of the corporate journey to achieve these goals involves meeting various milestones along the way, said Viral Thakker, partner, and sustainability and climate leader, Deloitte South Asia,
He also underscored the importance of a calibrated approach rather than relying on ad hoc measures. “One has to work towards it, and implement projects to get there. In order to make sure these projects are prioritized, it requires active involvement of the management.”
“Based on whatever is the net-zero pathway that might be committed, it’s important for the management to follow
BUSINESSES and consultants are increasingly focusing on green development
THIS transformation underscores the importance given to green development in the global agenda
that through. And hence, the achievement of those milestones can be a part of the evaluation process. We believe it is possible to align profitability with purpose,” he added.
Experts found merit in linking executive pay with ESG goals. “Given that corporate actions are guided by the leadership’s vision, linking executive remuneration with ESG goals is a step in the right direction, as it would aid in ensuring that sustainability strategies translate into action on the ground, and is visible to stakeholders in the way business is done,” said Neha Malhotra, partner,
EXPERTS see merit when pay is linked with environmental, social and governance goals
THE participating firms comprised some of the largest public and private Indian corporations
sustainability and ESG solutions, Nangia Andersen India.
As climate change risks escalate, the ‘Chair of the future’ must direct the leadership’s focus towards adaptation and mitigation strategies, and incentivise alignments between individual and organisational goals towards sustainability, the report added.
According to the report, businesses and consultants are increasingly focusing on green development as climate action has, in some instances—such as the European Union’s implementation of a carbon border tax—resulted in trade barriers. This transformation underscores the importance accorded to green development in the global agenda, as evidenced by G20 leaders’ resolution to strike a balance between pursuing environmentally sustainable action and inclusive economic growth during a meeting in Delhi last year. The Deloitte survey also highlighted the participating chairpersons’ suggestions to establish dedicated committees within boards for overseeing climate action, mirroring the role of audit committees in companies, which oversee accountingpoliciesandstatutoryaudits.
Despite the slowdown, India will still remain the fastest-growing major economy in the world