Indian Economy News

Indian economy likely to grow 7% in FY24 amid benign global outlook: NCAER

The Indian economy is poised for robust growth exceeding 7% in the current fiscal year, as the economic think tank NCAER forecasted. High-frequency indicators such as the Purchasing Managers' Index (PMI) reaching 16-year high and record-breaking volumes in the UPI digital payments system indicate the domestic economy's resilience. Director General Ms. Poonam Gupta highlights the potential for accelerated growth, supported by anticipated global economic expansion and an above-normal monsoon forecast.

NCAER reports notable achievements in key economic metrics. Goods and Services Tax (GST) collections hit US$ 21.58 billion (Rs. 1.8 lakh crore) in March, marking the second-highest figure since its inception. Additionally, UPI transactions surged to 13.4 billion in March 2024, demonstrating a substantial year-on-year increase of 55.3%. These positive trends and favourable global projections from entities such as the IMF and WTO underscore optimism for India's economic trajectory. The overall outlook remains optimistic despite mixed employment indicators, including a rise in EPFO subscribers offset by moderated online hiring activities. Various institutions, including the ADB, IMF, and RBI, maintain growth projections for India, with the Monetary Policy Committee opting to retain the policy rate at 6.5%.

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