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India Ratings and Research (Ind-Ra) has upwardly revised its GDP growth projection for the fiscal year 2023-24 to 6.7%, up from the previous estimate of 6.2%. The agency attributes this positive adjustment to several factors, including the resilient performance of the Indian economy, which exhibited a growth rate of 7.6% in the second quarter of FY24. Ind-Ra points to sustained government capital expenditure, the improved balance sheets of corporations and the banking sector, the potential initiation of a new private corporate capital expenditure cycle, and consistent growth in business and software services exports, along with remittances from abroad, as factors contributing to the optimistic outlook.

Despite these positive indicators, Ind-Ra acknowledges global risks, citing projections by the World Trade Organization (WTO) of slower-than-expected growth in world merchandise trade volume. The International Monetary Fund (IMF) also anticipates a global growth slowdown to 2.9% in 2024, compared to 3% in 2023, signaling challenges, particularly in advanced economies.

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