The Indian economy is poised for a growth rate of 7 percent in the fiscal year 2024 (FY24), with optimistic projections extending into FY25, according to a review of the Indian economy presented by the government.
It may be noted that the ‘Indian Economy – A Review’ is not the Economic Survey of India that will be presented before the full budget after the general elections.
The projections come just days ahead of the anticipated interim budget presentation by Finance Minister Nirmala Sitharaman on February 1, marking the final budget before the country heads into a Lok Sabha polls this summer.
Attributing the robustness in domestic demand, particularly in private consumption and investment, to government reforms and measures implemented over the past decade, the review sets the stage for the upcoming budget.
“The robustness seen in domestic demand, namely, private consumption and investment, traces its origin to the reforms and measures implemented by the government over the last ten years,” the review said.
As per the government’s first advance estimates, India’s economy is poised to grow at a rate of 7.3 percent in the current financial year. This follows a growth of 7.2 percent in 2022/23 and 8.7 percent in 2021/22.
Several global brokerages, including S&P Global Ratings, remain optimistic about India’s economic prospects, forecasting it to retain its position as the fastest-growing major economy for the next three years.
This trajectory positions India to potentially become the world’s third-largest economy by 2030, surpassing Japan and Germany.
