UNMATCHED POTENTIAL

India's economy is formidable and continues to grow compared to other major economies in the world

The Indian economy is healthy and is one big bright spot in an otherwise gloomy global economic scene where several major economies are either in the grip of a slowdown or facing the possibility of a recession.

With a very creditable gross domestic product (GDP) growth rate of 7.2% in the last fiscal (FY23), India was a stand-out economy in the world. Despite some challenges, there is optimism about a healthy GDP growth rate in the range of 6% to 6.5% for the current fiscal year (FY24).

India’s apex bank, the Reserve Bank of India (RBI), has forecasted a creditable 6.5% GDP growth for this fiscal year. Moreover, several multilateral organizations, financial institutions, banks, brokerages and economic think-tanks have also pegged India’s growth at around the same range.

The World Bank, despite a downward revision of its GDP forecast for India, has still pegged it at 6.3% for FY24 while the Asian Development Bank (ADB) has projected a figure of 6.4%.

Other reputed organizations too have estimated India’s GDP growth at around 6% or slightly higher. Fitch has pegged India’s GDP growth at 6.3%, while S&P has pegged it at 6%. The Organisation for Economic Co-operation and Development (OECD) has also pegged India’s GDP growth for this fiscal year at the same figure.

India’s robust recovery from the ravages of the Covid-19 pandemic has been strong and can be attributed to the pro-active measures taken by the Mr Narendra Modi-led government at the Centre to boost the country’s economy.

There are headwinds for sure, but then the global environment itself is not very bright and several countries are facing low-growth prospects. In this context, India’s performance and prospects appear promising, and it is poised for healthy growth in the future.