Buoyed by a robust performance in Q2 of FY24 and a growth projection above 7% for the fiscal year, global agencies have upwardly revised India’s growth outlook. Despite increased government spending on capital expenditure, overall expenditure has been reprioritised, evidenced by an improved capital outlay to revenue expenditure ratio. The government’s inclusive approach to economic growth is evident through initiatives for low-income people, women, youth, and farmers while maintaining fiscal consolidation commitments. The fiscal deficit estimate for FY24 has been lowered to 5.8% of nominal GDP, with a further reduction of 5.1% expected in FY25.
