India poised to sustain growth momentum, but no time to rest on laurels: Fin Min report

Posted on:
Key Points

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..

On what is working for Indias economy, the ministry said that it sees strength in the countrys domestic demand.iStock..

The Indian economy appears to grow more durably than before, however, a host of external factors currently pose a threat to the country's growth momentum, the Finance Ministry said in its annual review report on Thursday...

That said, external factors like escalation of geopolitical stress, enhanced volatility in global financial systems, sharp price correction in global stock markets, El Nino, and modest trade activity and FDI inflows are likely to constrain Indias pace of economic growth in the ongoing fiscal, it added...

"The debt leverage is now on a glide path which will become more pronounced as the economy continues to defy global headwinds and grow above the pre-pandemic rate," the report said.. FDI flows to India bore the brunt of inflationary pressures and tighter monetary policy abroad, the ministry noted..

You might be interested in

Within Asia, India offers compelling opportunity to investors: Morgan Stanley

16, Jan, 24

New Delhi [India], January 16 (ANI): India remained the best domestic demand alpha opportunity in Asia, with investors mostly constructive. Investors are particularly focused on the sustainability of growth as higher compound annual growth will be needed to justify the valuations and new investments, said Morgan Stanley in a report. Within Asia, India offers a […]

Can’t rest on laurels, India poised for growth: FinMin

06, Jul, 23

The word of caution from DEA, which prepares annual budgets, is significant in a pre-election year when governments tend to loosen fiscal controls and announce fresh schemes

Indian economy's size to double by FY31, growth to average 6.7%: S&P Global

03, Aug, 23

Indian economy will average 6.7% growth between FY24 and FY31, S&P said in a report. India will also double the size of the economy to $6.7 trillion within the next eight years. It forecasted Indias per capita GDP to increase to $4,500 by FY31. It further pointed that geopolitics can provide potential tailwinds for Indias growth efforts.

India's economic resilience: IMF predicts Indian economy will grow by nearly 6 per cent this fiscal year

28, Apr, 23

The International Monetary Fund (IMF) on April 11, released its latest World Economic Outlook report, projecting that the Indian economy will grow by 5.9 per cent in the current fiscal year, making it the fastest-growing economy in the world. Nonetheless, the organization also warned that disruption in the financial system could have a detrimental effect on overall global growth.

Explained: What’s keeping India’s economy shielded from global headwinds

26, May, 23

India has been predicted to be the fastest-growing economy in the world despite the turbulent global scenario. Find out what are the reasons that have shielded the country's economy from global headwinds.

Indian economy outperforming peers, projected to grow at 6.2 per cent in 2024: UN

05, Jan, 24

The UN predicts India's growth at 6.2% in 2024, driven by strong demand and sectors like manufacturing and services. Despite potential challenges like erratic rainfall affecting agriculture, India's economy remains robust with consistent growth. Factors like stable inflation and government support contribute to this optimism. However, risks like climate change's impact on agriculture and potential inflation surge exist. Globally, economic growth may slow to 2.4% in 2024 due to various challenges, requiring substantial investments for sustainable development and climate action.

India likely to keep economic growth momentum in FY25 despite risks

29, Jan, 24

India expects its economy to grow around 7% in the next fiscal year, outpacing the global economy. The growth will be supported by stable domestic demand and private investment. Recent events in the Red Sea crisis may impact global trade and supply chains, affecting trade flows, transportation costs, economic output, and inflation worldwide.

Rural demand, government spending to drive growth in second half of FY25: ICICI Report

14, Nov, 24

New Delhi [India], November 14 (ANI): The rural demand and government spending will be key drivers of India’s economic growth in the second half of the current financial year (October-March FY25), according to a report by ICICI Bank. The report anticipated that the rural economy gains momentum, with the government’s continued emphasis on infrastructure and […]

‘Indian economy likely to keep pace of expansion’: We’re optimistic about India, whatever the odds, says RBI

21, Mar, 23

“Unlike the global economy, India would not slow down – it would maintain the pace of expansion achieved in 2022-23. We remain optimistic about India, whatever the odds,” RBI said in its 'State of Economy' report released in the Monthly Bulletin for March.