FinMin sees bright FY24, backed by robust indicators

The Indian economy is experiencing strong private consumption, which is driving economic growth. Two new drivers of growth have also emerged: a gradual strengthening of investment demand and firming up of industrial activity. However, there are downside risks from global headwinds and uncertainties in weather conditions. The government aims to contain the budgeted fiscal deficit to 5.9% of GDP by FY24.

India's chief economic advisor, V Anantha Nageswaran, has urged for an upward revision of the country's FY24 growth forecasts to at least 7%, despite the National Statistics Office's forecast of 7.6%. The CEA believes sustained investment activity, healthy Rabi sowing, manufacturing profitability, and underlying services sector resilience will support economic activity in FY25.

In FY24, agency expects India to continue to be fastest growing large economy with a GDP growth rate of 6%

The UN World Economic Situation and Prospects 2024 report says while India will remain fastest-growing big economy, it faces risks from erratic monsoons & possible oil price spike.

V Anantha Nageswaran said that India is unlikely to witness higher growth like it had seen between 2003 and 2008 when the economy grew 8.5-9%, supported by benign global conditions.

The comments from India's finance ministry came in an annual economic report that flagged risks in FY2024 stemming from geopolitical issues and the impact of the El Nino weather phenomenon. India's rural demand is on the path to recovery, the report said. On what is working for Indias economy, the ministry said that it sees strength in the countrys domestic demand.

Asian economies are accelerating the pace of overall economic recovery in 2023 this year, says Boao Forum for Asia in a report. Asia's weighted real Gross Domestic Product (GDP) growth rate in 2023 is estimated to be 4.5 per cent, an increase from 4.2 per cent in 2022.

In 2023, the global economy weathered challenges, defying projections of a downturn. Despite looming threats such as high interest rates and pandemic aftermath, stability prevailed. The US, China, and India showed promising growth, yet uncertainties cast shadows. As 2023 comes to an end, let's check what the economic outlook suggests.

For the first time in history, a large majority of the world's population is not experiencing growth rates above 1%. In the past, China played a significant role in global growth. Now, India is emerging as a key player. India's rise can make a meaningful impact on global economic growth, Kumra said. In its new report, Asia: Cusp of a New Era, McKinsey said that India is also emerging as a key global trading partner.

The finance ministry believes that India will experience sustained brisk growth in the coming years due to structural reforms and approaches the 'Amrit Kaal' with confidence in overcoming challenges. The country has achieved inclusive development, lower unemployment, and moderate inflation under the Modi regime. The review highlights India's economic resilience and strength, achieving over 7% growth for three consecutive years despite global economic struggles.