India's real GDP is to grow between 6.5-7% in 2024-25
An average annual rate of 6.6% during decade ending FY20
Various
NATIONAL, July 22, 2024: India's real GDP is expected to grow between 6.5-7% in 2024-25, despite uncertain global economic performance. The Economic Survey 2023-24 presented by Union Minister of Finance and Corporate Affairs Nirmala Sitharaman in Lok Sabha Monday highlighted that domestic growth drivers have supported economic growth in FY24, with an average annual rate of 6.6% during the decade ending FY20.
However, the survey warns that any escalation of geopolitical conflicts in 2024 may lead to supply dislocations, higher commodity prices, revived inflationary pressures and stalling monetary policy easing with potential repercussions for capital flows.
The global trade outlook for 2024 remains positive, with merchandise trade expected to pick up after registering a contraction in volumes in 2023. The Reserve Bank of India (RBI) has kept interest rates unchanged for some time, and anticipated easing has been delayed. India's economy showed resilience to global and external challenges, with real GDP growing by 8.2% in FY24, exceeding the 8% mark in three out of four quarters. Gross Fixed Capital Formation (GFCF) in India increased by 19.8% in FY23, with private non-financial corporations contributing to this growth.
India has remained on the course of fiscal consolidation, with the fiscal deficit reduced from 6.4% of GDP in FY23 to 5.6% of GDP in FY24. Capital expenditure for FY24 stood at ₹9.5 lakh crore, an increase of 28.2% YoY and 2.8 times the level of FY20. The private sector is demonstrating strong growth in capital formation, particularly in machinery and equipment capital stock.
Survey states as per the World Economic Outlook (WEO), April 2024 of the International Monetary Fund (IMF), the global economy registered a growth of 3.2 per cent in 2023.
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