: Hoping for a High: Indias FY24 GDP growth rate predicted in 6-6.5% range #IndiaNEWS #Business <br>The 4. 4 per cent growth (down from 6. 3 per cent in the previous quarter) logged during the

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Hoping for a High: Indias FY24 GDP growth rate predicted in 6-6.5% range #IndiaNEWS #Business
<br>The 4. 4 per cent growth (down from 6. 3 per cent in the previous quarter) logged during the third quarter of FY23 was predicted by the Reserve Bank of India (RBI) couple of months back while the markets had estimated it at a slightly higher level again difference only in the decimal point.
In December 2022 announcing the RBIs Monetary Policy Committees (MPC) decision to hike the repo rate by 35 basis points to 6. 25 per cent, Governor Shaktikanta Das said the real GDP growth for FY23 is projected at 6. 8 per cent, with Q3 at 4. 4 per cent and Q4 at 4. 2 per cent.
Last month after the MPC meeting, Das said the economic growth for FY24 was projected at 6. 4 per cent with Q1 at 7. 8 per cent; Q2 at 6. 2 per cent; Q3 at 6. 0 per cent; and Q4 at 5. 8 per cent.
As to the reasons for the 6. 4 per cent growth Das said the expected higher rabi output has improved the prospects of agriculture and rural demand. The sustained rebound in contact-intensive sectors should support urban consumption.
Broad-based credit growth, improving capacity utilisation, governments thrust on capital spending and infrastructure should bolster investment activity. According to our surveys, manufacturing, services and infrastructure sector firms are optimistic about the business outlook, Das said.
He said the protracted geopolitical tensions, tightening global financial conditions and slowing external demand are the downside risks.
On the other hand, credit rating agency CARE Ratings estimate Indias economic growth for FY24 at 6. 1 per cent.
Government focus on capex and improving intent of the private sector to invest should be supportive of investment demand. We expect GDP growth to moderate to 6. 1 per cent in FY24, Rajani Sinha, Chief Economist, CARE Ratings, told IANS.
For FY23, CARE Ratings estimates the GDP to grow by 7 per cent.
As the external demand conditions remain weak, it is critical that domestic demand should accelerate. Improving rural demand and rising rural wages are the positive developments for aggregate demand. However, there is expected to be some fizzling out of the pent-up domestic demand seen in the last few quarters, CARE Ratings said in a report.
The credit rating agency added that the Indian governments focus on capex and improving intent of the private sector to invest should be supportive of investment demand but lower external demand and raising interest rates poses downside risks for investment revival.
Meanwhile, global credit rating agency Moodys Investors Service has projected Indias growth rate at 6. 5 per cent for 2024 and 5. 5 per cent for 2023.
In the case of inflation rate, Moodys has predicted 6. 1 per cent for 2023 and 5.

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