Mumbai: India Ratings and Research hiked its GDP growth forecast for the country for FY24. The agency hiked the GDP growth estimate to 6.2% from the 5.9% expected earlier. The agency cited the government’s capital expenditure, deleveraged balance sheets of India Inc and banks, subdued global commodity prices and the prospect of private capital expenditure picking up as the reason for this hike.
‘All these risks will continue to weigh and restrict India’s GDP growth to 6.2%t in FY24, and the quarterly GDP growth, which came in at 7.8% in the June quarter, is slated to slow down sequentially in the remaining three quarters of FY24,’ its principal economist Sunil Kumar Sinha said. In FY23, the economy had grown at 7.2%. As per the agency, the private final consumption expenditure (PFCE) is expected to grow 6.9% annually in FY24 compared with a 7.5% expansion in FY23.
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Earlier, the Reserve Bank of India (RBI) had forecast Q1FY24 real GDP growth at 7.8% and full-year growth at 6.5%. Recently, S&P Global Market Intelligence had revised its FY24 growth estimates for India to 6.6% from 5.9%, due to buoyant economic growth momentum recorded during Q1FY2024.
According to the agency, the retail inflation will soften, and the headline CPI will come at 5.5% in FY24.
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