- According to a recent World Bank report ‘India Development Update’, India’s GDP growth is predicted to slow down to 6.3% from 6.6% in FY2024.
- Apart from this, retail inflation in India is estimated to come down from 6.6% to 5.2% in the financial year 2023-24.
- The current account deficit (CAD) of the country is expected to reach 5.2% in FY24.
- According to the second advance estimates released by the National Statistical Office, the economy is estimated to grow 7 per cent in 2022-23.
- For 2023-24, the Economic Survey released in January-end had pegged India’s baseline growth rate at 6.5 per cent, while the Reserve Bank of India’s growth forecast for the current fiscal is 6.4 per cent.
- The reason for this decline is the reduction in consumption due to reduction in income level and the challenges of external conditions.
- Rising borrowing costs and slower income growth will weigh on private consumption growth.
- Despite the external challenges to growth, India was one of the fastest growing economies in the world, the World Bank said.
- Though there were some signs of moderation in the second half of FY23, growth was underpinned by strong investment activity bolstered by the government’s capex push and buoyant private consumption, particularly among higher income earners, it said.
- Asia’s third-largest economy registered a growth of 4.4 per cent in October-December, up from 11.2 per cent a year ago and 6.3 per cent in the previous quarter.
- Rating agency S&P Global Ratings did not revise its forecast for India’s economic growth and kept it at 6 per cent.
India’s GDP growth likely to moderate to 6.3% in FY2024
