India's resilient economy seen expanding 6.7% in FY24
Indian economy is likely to grow 6.7% in FY24, according to a median forecast of 11 economists, staying resilient despite external headwinds as domestic demand and improving investments provide support. Prospects have improved from a month ago, when an ET poll pegged the current fiscal year's expansion at 6.3%.
However, the median is still short of the recent Reserve Bank of India (RBI) estimate.
Earlier this month, the central bank raised its forecast for the year to 7%, from 6.5% estimated earlier, following a better-than-expected 7.6% rise in gross domestic product (GDP) in the September quarter.
Growth in the first half of this fiscal year was 7.7%. The government will release the first advance estimates for FY24 on January 5.
The Indian economy registered 7.2% growth in FY23.
«India's growth has remained largely resilient in the face of external headwinds,» said Rahul Bajoria, managing director and head of EM Asia (ex-China) economics, Barclays.
Last month's release of second quarter numbers led to a spate of forecast revisions for the fiscal year. Ratings agency Fitch expects the economy to grow 6.9% in FY24, compared with 6.5% projected earlier.
«We have revised our GDP growth projection upwards by 50 bps to 6.8% for FY24 owing to the positive surprise on the investment front in second quarter GDP numbers,» said Rajani Sinha, chief economist, CareEdge.
