Indian Economy Poised for 6.5% Growth in FY24 Despite Looming Risks

Indian economy expected to grow at 6.5% real GDP in FY24 as per Finance Ministry report in August 2023.
Growth driven by strong domestic demand, corporate profitability, private capital formation and bank credit growth.
Q1 FY24 growth stands at 7.8% as per NSO estimates. High frequency indicators show sustenance of momentum in Q2.
Banking sector showing resilience - declining NPAs, improving CRAR, RoA and RoE.
Risks remain from high crude prices, monsoon deficit in August and stock market correction. However, corporate profitability and private investment provide bright spots.

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9/18/2023

Experts Concerned as India's Growth Trajectory Slows, Threatening Fiscal Targets

India's goal of achieving 6.5% real GDP growth in FY24 may be complicated by lower-than-anticipated nominal growth, potentially delaying the country's aim of becoming a $5 trillion economy by another year.

9/25/2023

S&P Retains India's Growth Forecast at 6% for 2023-24 Despite Global Headwinds, Sees Higher Inflation

S&P Global Ratings retains India's FY24 growth forecast at 6% due to the slowing world economy, subnormal monsoons, and delayed rate hikes, while also revising up the full fiscal retail inflation forecast to 5.5% on higher global oil prices.

10/16/2023

India's Economy Poised for Faster-Than-Expected 6.7% Growth in 2023-24 on Robust Credit Expansion and Bottom-of-Pyramid Banking Revolution

The International Monetary Fund has upgraded India's GDP growth forecast to 6.3% for 2023-24, citing positive factors such as monsoon rainfall, capital expenditure, new company registrations, and robust credit growth, leading to the possibility of growth surpassing 6.5% in Q2 FY24.