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India GDP To Grow 6.3% In FY24, Economic Prospects Brighten: Deloitte

According to Deloitte India’s economic projection, India’s GDP will likely grow between 6% and 6.3 percent in the current fiscal year, which ends on March 31, 2024. If global worries subside, growth could exceed 7% during the next two years.

Numerous economic indicators, such as the tight labor markets and decreased risk spreads following the US banking crisis, show that downside risks to the global economy are decreasing as the likelihood of a recession in major industrial countries this year decreases.

However, there are still a lot of questions about how the major central banks will operate and how the price of oil will change. “India’s GDP continues to see strong economic activity amid enduring global uncertainties,” it stated. “Considering the economy’s resilience, Deloitte is upbeat about the future and has released its expectations for this year and the following. In FY 2023–2024, Deloitte projects India to grow by between 6% and 6.3 percent, with a more promising picture going forward. Growth is anticipated to exceed 7% over the next two years, if global uncertainties subside, it said.

Also read, Discretionary demand on the mend in June-July; see full recovery in second half of fiscal year.

Deloitte’s Estimates for India GDP:

“At the moment, India is having a Goldilocks moment. Our growth projections for FY 2023–24 are broadly in line with those we made in April, with the exception that the stronger-than-anticipated growth in FY2022-23 has increased our base for comparison. Having said that, given the strength of the economy, we have increased our lower limit of the range, according to Rumki Majumdar, an economist with Deloitte India. As shown by the sales of mid-to-high-end car segments, the quantity of UPI transactions, and domestic air passenger traffic data, urban demand conditions have remained resilient. Tractor sales, IIP non-durable items, and MGNREGA data all show an increase in rural demand, which had been underperforming.

Investment is progressing as well. Despite the growing interest rates, the credit-deposit ratio has steadily increased since the pandemic’s lows. “Lending occurs mostly in the business and services sectors. The supply side is preparing to meet the increased demand since this indicates improved investment, Rumki Majumdar continued.

The first quarter of 2019 saw inflation drop to 4.5 percent, the lowest level since the third quarter of 2019. GST collections are still strong, indicating that increased revenue will help reduce the budgeted fiscal deficit as a percentage of India’s GDP.

Deloitte’s economic outlook stresses the importance and long-term effects of the monetary policies practiced in the West as one of the global dangers.

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