India will have a GDP growth of 6.9-7 percent in this fiscal year on account of strengthened economic basics, as said by a Q update Offering given by Deloitte India recently.
According to the first advance estimates of national income by the National Statistical Office (NSO), the Indian economy is likely to grow at 7.3 percent in FY24 as against a growth rate of about 7.2 percent last year —Driven majorly because mining & quarrying, manufacturing and some segments within services sectors performed well.
According to Deloitte India’s recent economic report, the Indian economy is now showing a strong underlying momentum due to enhanced economic fundamentals.
According to the IMF, India’s CAD was 1.9 percent of GDP in FY23-24 and is set to be even lower by the quarter ending March. This means that easily accessible funds are available for investment as no emergency cash calls need financing through borrowing from external sources or renegotiating debts with banks.
It also appreciated the RBI for pursuing a “steady” monetary policy that helped support macroeconomic stability as economic activity and inflation rates were consistent. Also, foreign exchange reserves are still comfortable at Rs 568 billion or more than ten months of import cover.
It added, At present, inflation is at 5 percent, which, although a bit high compared to the target range of the Reserve Bank of India, is significantly lower than what it used to be almost about a decade back. India is likely to increase by 6.4 percent.
“And, although the global economic situation is still moderate and leaves its shadow over India’s economy, India could withstand these uncertainties better than the rest of world,” commented Rumki Majumdar, Economist in Deloitte India.
She is still worried about ongoing inflation that recently crept up to 5.6 percent from a slight reduction last month.
“High inflation is likely to continue till H2 FY 20-24 as a result of high food and volatile oil prices, which may moderate thereafter”
noted Majumdar.
Citing India’s 10-year growth story, Deloitte said that in the past decade, it has focused on the development of new know-how and capabilities with strategic outcomes emerging as to how businesses, industries, governments, or citizens come together to develop intricate products, services, and solutions.
