Worst for Indian economy may be over: Moody's

MUMBAI – Ratings agency Moody's says the Indian economy has improved and that in 2014 it could register growth of 5 to 5.5% - rising to 6% in 2015. Their perception is that the worst is over for India’s economy.

The stream of bad economic news emanating from India has begun to ebb, according Moody's Analytics. It says there is a growing list of reasons to believe the economy has started to turn the corner, albeit slowly, after 30 months of sub-par growth.

A pick-up in exports and normal monsoon rains, together with the prospect of a better government after the April-May election have boosted business sentiment and investor confidence.

"Economic growth has stabilised and downside risks have fallen,” the report says. “This year the economy should perform better than in 2013, but it will be a long time before India grows back at its potential."

 Externally, Moody’s says, the global economy is stabilising, with better growth expected in 2014 (N. Hariharan – ATI).