India’s economy to grow up to 7% yoy in FY2024, government report says
Budget spending is also expected to be ramped up to address concerns of uneven economic growth in the country
INDIA’S economy will grow at 6.5 to 7 per cent in the current financial year ending March 2025, a finance ministry report said on Monday (Jul 22).
The projected growth is below the 7.2 per cent forecast by the Reserve Bank of India – the country’s central bank.
The growth projection in the country’s annual economic survey was tabled in parliament by Finance Minister Nirmala Sitharaman, ahead of the federal Budget on Tuesday.
The forecast is also lower compared to the 8.2 per cent growth in the previous year, and the upwardly revised estimates of 6.8 to 7.2 per cent by private economists and rating agencies.
The report on the state of India’s economy said that with risks evenly balanced, there could be slower growth in private investments.
“Private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity,” it said.
Prime Minister Narendra Modi – whose party fell short of reaching the halfway mark in the general election – is widely expected to use strong tax collections and a record US$25 billion dividend from the central bank to ramp up Budget spending to address concerns over uneven economic growth. REUTERS
Share with us your feedback on BT's products and services
