The Indian economy is healthy and is one big bright spot in an otherwise gloomy global economic scene where several major economies are either in the grip of a slowdown or facing the possibility of a recession.
With a very creditable gross domestic product (GDP) growth rate of 7.2% in the last fiscal (FY23), India was a stand-out economy in the world. Despite some challenges, there is optimism about a healthy GDP growth rate in the range of 6% to 6.5% for the current fiscal year (FY24).
India’s apex bank, the Reserve Bank of India (RBI), has forecasted a creditable 6.5% GDP growth for this fiscal year. Moreover, several multilateral organizations, financial institutions, banks, brokerages and economic think-tanks have also pegged India’s growth at around the same range.
The World Bank, despite a downward revision of its GDP forecast for India, has still pegged it at 6.3% for FY24 while the Asian Development Bank (ADB) has projected a figure of 6.4%.
Other reputed organizations too have estimated India’s GDP growth at around 6% or slightly higher. Fitch has pegged India’s GDP growth at 6.3%, while S&P has pegged it at 6%. The Organisation for Economic Co-operation and Development (OECD) has also pegged India’s GDP growth for this fiscal year at the same figure.
India’s robust recovery from the ravages of the Covid-19 pandemic has been strong and can be attributed to the pro-active measures taken by the Mr Narendra Modi-led government at the Centre to boost the country’s economy.
There are headwinds for sure, but then the global environment itself is not very bright and several countries are facing low-growth prospects. In this context, India’s performance and prospects appear promising, and it is poised for healthy growth in the future.
This story is from the July 2023 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2023 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Young Or Old? Find Your Ideal Health Plan
Age doesn't define you: find your ideal health coverage at any stage! Choose individual or family plans that fit your needs
IMPORTANT JARGON
The phase-wise voting in India for general elections began on 19th April.
BACK IN BUSINESS
Buoyed by post-pandemic travel trends and rising disposable incomes, India's hotel industry is expected to maintain its growth momentum, going forward
SCOOPING UP SUCCESS
Investments are hot, but innovation and competition are the next scoops to conquer for ice cream companies
DIG DEEPER
Investors chasing high-growth should prioritize near-term EPS explosion to justify high PE ratios, but also verify long-term business health and management before taking the plunge
SOARING AMBITIONS
Bolstered by cost advantages and government support, India's Electronics Manufacturing Services industry sets its sights on a $100 billion slice of the global market by 2026
TARGET IN SIGHT
Government policies and private sector involvement have propelled India's defence exports to new heights, putting the seemingly ambitious $5 billion target firmly within reach
PLAYING THE LONG GAME
Small and mid-cap surge in India raises regulatory concerns, but long-term investors with risk strategies may benefit from these volatile stocks given positive economic and interest rate forecasts
MAGNIFIED PRESSURE
While the asset quality of banks is anticipated to remain largely stable, challenges persist in the form of mobilizing deposits and peaking profitability
OPPORTUNITY KNOCKS, BUT CHALLENGES AWAIT
INDIA'S BOOMING PE MARKET ATTRACTS INVESTMENTS IN CONSUMER AND INFRASTRUCTURE, BUT CHALLENGES LOOM. CAN FIRMS PRIORITIZE VALUE CREATION TO NAVIGATE THE RISKS?