Moody's Ratings on Thursday said India will remain the Asia-Pacific region's fastest-growing economy in 2024, sustaining last year's domestically driven momentum.

In a report titled Credit Conditions Asia-Pacific H2 2024 Credit Outlook, Moody's Ratings said Indonesia, the Philippines and India led the way in terms of growth in the first half of 2024 and should continue to outperform pre-COVID growth numbers on the back of rising exports, local demand and government spending on infrastructure.

"India will remain the region's fastest-growing economy, sustaining last year's domestically driven momentum. We anticipate policy continuity after the general election and a continued focus on infrastructure development and encouragement of private sector investment," it said.

Moody's said stronger portfolio inflows are likely in the Indian and ASEAN economies because of robust corporate credit metrics and appealing valuations.

Last month, the rating agency projected that India will grow 6.8 percent in the current year and 6.5 percent in 2025, thanks to strong economic expansion and post-election policy continuity.

India's real GDP grew 7.7 percent in 2023, up from 6.5 percent in 2022, driven by robust government capital spending and strong manufacturing activity.