main Economic advisor V. Ananth Nageswaran said on Wednesday that based on the strong growth recorded in the three quarters of the financial year ending March 31, 2024, the gross domestic product (GDP) growth rate is quite likely to reach 8 percent in the financial year 2023-24. There is a possibility. India’s gross domestic product grew by 8.4 percent in the third quarter ending December 2023. GDP growth in the second quarter was 7.6 percent. Whereas in the first quarter it was 7.8 percent. “IMF has projected a growth rate of 7.8 per cent for the financial year 2023-24,” he said at an event organized by NCAER. If you look at the pace of growth in the first three quarters, clearly the chances of the growth rate reaching 8 per cent are quite high.
More than RBI estimates
This is higher than the Reserve Bank of India (RBI)’s forecast of 7.5 percent growth for the Indian economy in 2023-24. He said that the International Monetary Fund (IMF) estimate for the current financial year is 6.8 percent. But the Reserve Bank of India expects 7 percent GDP growth for the financial year 2024-25. Regarding growth beyond the financial year 2024-25, he said that India’s growth rate is likely to be between 6.5 to 7 percent, because the main difference in this decade as compared to the last decade is the non-financial sector in the financial and corporate sector. ‘s balance sheet is strong.
India Ratings expressed this estimate
Recently, domestic rating agency India Ratings and Research (India Ratings) had increased the country’s gross domestic product (GDP) growth rate estimate for the financial year 2024-25 from 6.5 percent to 7.1 percent. This estimate is slightly higher than the Reserve Bank’s estimate of seven percent. The domestic rating agency said sustained government capex, reduced credit on the corporate and banking sector books and strong support from early private corporate capex have forced it to revise down its growth forecast.
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