India GDP crosses $3.5 trillion in 2022; bureaucracy could slow pace of investment: Moody's - Times of India
[ad_1]
NEW DELHI: India's GDP has crossed $3.5 trillion in 2022 and will be the fastest-growing G-20 economy over the next few years, but reform and policy barriers could hamper investment, Moody's said on Tuesday. In a research report, the US-based rating agency said bureaucracy could slow approval processes in obtaining licences and setting up businesses, prolonging project gestation. "India's higher bureaucracy in decision-making will reduce its attractiveness as a destination for foreign direct investment (FDI), especially when competing with other developing economies in the region, such as Indonesia and Vietnam," Moody's Investors Service said. It said a large young and educated workforce, increasing nuclear families and urbanization will fuel demand for housing, cement and new cars. Government infrastructure spending will bolster steel and cement, while India's net-zero commitment will drive investment in renewable energy, it said. "Wh...