Indian Economy Outlook 2024-25

  • 21 Feb 2024

On 20th February, 2024, the Finance Ministry projected a positive economic outlook for FY 2024-25, highlighting key factors supporting growth while acknowledging geopolitical challenges.

Key Points

  • Economic Resilience and Growth Trajectory: Three consecutive years of robust growth underscore the resilience of the Indian economy, with strong private consumption driving expansion.
  • Investment Landscape and Growth Forecast: Investment momentum is strengthening, with high public expenditure catalyzing private investment, leading to increased capacity utilization and expansion.
  • Growth Projections and Global Recognition: India's GDP is estimated to grow at 7.3% in the current fiscal year, maintaining a growth trend exceeding 7% for three consecutive years.
  • Global agencies and the Reserve Bank of India project continued growth, reflecting India's economic resilience.
  • Tailwinds and Demand Drivers: Healthy Rabi harvest, sustained manufacturing profits, and resilient services are expected to bolster economic activity.
  • Improved household consumption and private investment, supported by government initiatives, are anticipated to drive growth.
  • Geopolitical Concerns and External Factors: Despite optimistic prospects, geopolitical tensions, volatility in financial markets, and global economic fragmentation pose risks.
  • Supply chain disruptions and fluctuations in commodity prices impact trade dynamics, necessitating proactive measures.
  • Inflation Dynamics and Agricultural Outlook: Inflationary pressures have eased, attributed to lower food and core inflation.
  • Government interventions to stabilize food prices and favorable weather forecasts signal potential for agricultural growth.