February 21, 2023
As urban consumption continues to push demand for both goods and services domestic growth impulses have gained strength
Capex boost from the Budget 2023-24 has further contributed to economic growth
Domestic economic activity is expected to find continued support amidst a healthy Rabi harvest and improved rural demand
External Affairs Minister S Jaishankar mentioned that the Indian economy is expected to grow at a pace of 7% for FY24
India’s gross domestic product (GDP) is expected to grow at 7% for FY23, according to a report from credit rating agency Acuite Ratings.
The report also mentioned that although the country’s economic growth trajectory in FY24 will decline to 6%, India will retain its position as one of the highest-growth economies in the world. The Indian economy has fared well over the last several months amidst a challenging global environment.
The report further added that as urban consumption continues to push demand for both goods and services domestic growth impulses have gained strength. Additionally, a Capex boost from the Budget 2023-24 has further contributed to this.
Domestic economic activity is expected to find continued support amidst a healthy rabi harvest and improved rural demand, the strength in services sector exports, pent-up demand in the travel and the tourism sector along with the Central government’s consistent focus on pushing capital expenditure, as per the report.
On the other hand, External Affairs Minister S Jaishankar mentioned that the Indian economy is expected to grow at a pace of 7% for FY24 due to improved FDI and FII flows and in the investments which the government itself is leading the capital outlay in this year’s budget.
Sources: Business Standard | Business Standard