GDP may grow 5.9% in FY24: India Ratings

India Ratings said it expects private final consumption expenditure (PFCE) to grow 6.7% in FY24 but will be short of a broad-based recovery.

Gireesh Chandra Prasad
Updated22 Feb 2023, 08:14 AM IST
India’s economy is expected to grow 5.9% in FY24, lower than the RBI’s estimate of 6.4% (iStockphoto)
India’s economy is expected to grow 5.9% in FY24, lower than the RBI’s estimate of 6.4% (iStockphoto)

India’s economy is expected to grow 5.9% in FY24, lower than the RBI’s estimate of 6.4% as pent-up demand that fuelled growth is normalizing, exports are facing headwinds from global growth slowdown and credit growth is facing tighter financial conditions, India Ratings & Research said in its FY24 economic outlook released on Monday.

The forecast pointed out that the recovery in consumption is skewed in favour of goods and services consumed by those in the upper income bracket rather than mass consumption items, a fault line that needs to be addressed.

India Ratings said it expects private final consumption expenditure (PFCE) to grow 6.7% in FY24 but will be short of a broad-based recovery.

Devendra Kumar Pant, chief economist and senior director-public finance, India Ratings & Research said that the evolving weather conditions will have an impact on wheat output, inflation and consumption demand revival.

PTI adds: Economists at the State Bank of India have projected a GDP growth of 4.6% for the December quarter, saying as many as 30 high-frequency indicators are not as robust as they were in the previous quarters.

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First Published:22 Feb 2023, 08:14 AM IST
HomeEconomyGDP may grow 5.9% in FY24: India Ratings

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