India’s prospects brighter in 2024, retain fastest-growing spot: Assocham
Strong consumer demand will help India retain its spot as the fastest-growing economy in 2024 despite global headwinds, industry body Associated Chambers of Commerce & Industry of India said Thursday. The chamber noted that consumer demand would likely drive investment in construction, hospitality, and infrastructure, including railways and aviation.
“India Inc., led by financials, construction, hotels, aviation, automobile and other manufacturing areas like electronics, are on a strong pitch to further improve performance in the new year,” the body noted in a statement, pointing to low crude oil prices helping drive growth.
Construction and infrastructure-related sectors have received a push, with the government capex spending rising so far in FY24.
“Sectors like construction have several related industries which too have gained momentum.
These include steel, cement, mining, electricity generation and consumer durables,'' it said.
The centre’s capex spending was up nearly 55% compared with last year between April- October, whereas states have spent 40% more from last year.
India’s GDP expanded 7.6% in the second quarter due to double-digit growth in manufacturing and investment.
''India's macro picture looks quite convincing with the overall economy following a growth trend of 7% with critical building blocks combining to give it brighter prospects,'' said Deepak Sood, secretary general, Assocham.
An ET Poll found that India is likely to register 6.7% growth in FY24, with growth momentum being carried in FY25. The median of the ET Poll indicated a 6.3% expansion in the coming fiscal.
The industry body noted that India is expected to witness further improvement in government balance sheet and merchandise trade.
