India's fourth quarter GDP growth projected at 6.7%, FY24 growth at 7.8%, says ICRA

Domestic rating agency ICRA forecasts India's GDP growth to moderate to 6.7% in the fourth quarter of the FY24, marking a four-quarter low. For FY24, ICRA projects GDP growth to reach 7.8%. The economy displayed robust growth rates of 8.2%, 8.1%, and 8.4% in the June, September, and December quarters of 2023-24, respectively.

ICRA's Chief Economist, Mr. Aditi Nayar, highlights challenges, including lower volume growth and diminishing gains from commodity prices, which are expected to dampen India's GVA growth in the fourth quarter of FY24. Despite a 6.1% GDP expansion in the fourth quarter of FY23 and a full-year growth of 7% in 2022-23, ICRA anticipates the gap between GDP and GVA growth to moderate to 100 basis points in the fourth quarter of FY24. Despite challenges such as unfavourable 2023 monsoon rains affecting agricultural output, there are indications of an emerging revival in rural demand, particularly evidenced by domestic retail tractor volumes rebounding to a year-on-year expansion of 7.7% in the fourth quarter of FY24 after a 4% contraction in third quarter of FY24.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.