Indian Economy Outlook 2024-25
- 21 Feb 2024
On 20th February, 2024, the Finance Ministry projected a positive economic outlook for FY 2024-25, highlighting key factors supporting growth while acknowledging geopolitical challenges.
Key Points
- Economic Resilience and Growth Trajectory: Three consecutive years of robust growth underscore the resilience of the Indian economy, with strong private consumption driving expansion.
- Investment Landscape and Growth Forecast: Investment momentum is strengthening, with high public expenditure catalyzing private investment, leading to increased capacity utilization and expansion.
- Growth Projections and Global Recognition: India's GDP is estimated to grow at 7.3% in the current fiscal year, maintaining a growth trend exceeding 7% for three consecutive years.
- Global agencies and the Reserve Bank of India project continued growth, reflecting India's economic resilience.
- Tailwinds and Demand Drivers: Healthy Rabi harvest, sustained manufacturing profits, and resilient services are expected to bolster economic activity.
- Improved household consumption and private investment, supported by government initiatives, are anticipated to drive growth.
- Geopolitical Concerns and External Factors: Despite optimistic prospects, geopolitical tensions, volatility in financial markets, and global economic fragmentation pose risks.
- Supply chain disruptions and fluctuations in commodity prices impact trade dynamics, necessitating proactive measures.
- Inflation Dynamics and Agricultural Outlook: Inflationary pressures have eased, attributed to lower food and core inflation.
- Government interventions to stabilize food prices and favorable weather forecasts signal potential for agricultural growth.
