Ind-Ra projects India’s FY24 growth at 5.9%

Ind-Ra projects India’s FY24 growth at 5.9% : Credit rating and research agency, India Ratings and Research (Ind-Ra) projected the growth of the Indian economy to 5.9% year on year during 2023-24.

The GDP growth estimate of the agency is lower than the 6.4% real GDP growth projected by the RBI for FY24. According to the agency, there are fault lines in the economic recovery that is happening in the Private final consumption expenditure, Government Final Consumption Expenditure, and net exports.

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“Although there are a few positives for India such as – sustained government capex, deleveraged corporates, low NPA in the banking sector, Production-linked Incentive scheme and likelihood of global commodity prices remaining subdued, Ind-Ra believes they are still not sufficient to take the FY24 GDP growth beyond 6%,” Sunil Kumar Sinha, Principal Economist, India Ratings said.

Private Final Consumption Expenditure is estimated to grow 6.7% in FY24 from 7.7% in FY23, but it may not lead to a broad-based consumption demand recovery because the current consumption demand is highly skewed in favour of the goods and services consumed largely by the households belonging to the upper income bracket, the outlook said. “The goods and services of mass consumption have yet not shown a sustained pick-up,” it said.