India's GDP Set to Grow Amid Global Challenges

India's GDP is projected to grow between 6.5 and 7 percent in the current fiscal year as per the Economic Survey 2023-24. Despite lower growth compared to the previous year, domestic drivers and improved balance sheets will help the economy. However, global uncertainties may impact these projections.

India's GDP is likely to grow at 6.5 to 7 per cent in the current fiscal year amid global challenges which may impact exports, according to the Economic Survey 2023-24 tabled in Parliament on Monday.

Growth for 2024-25 is expected to be lower than the 8.2 per cent estimated for the previous financial year. The Reserve Bank projects GDP growth ending March 2025 at 7.2 per cent. Global agencies like IMF and ADB also anticipate India growing at 7 per cent.

The Survey, presented by Finance Minister Nirmala Sitharaman, cites domestic growth drivers and improved balance sheets as supporting the economy despite uncertain global performance. However, it cautions that private capital formation may become cautious due to fears of cheaper imports from countries with excess capacity.

Merchandise and services exports are expected to rise, supported by improving growth prospects in advanced economies. A forecast of normal rainfall and a satisfactory southwest monsoon could boost the agriculture sector and rural demand. The Survey, however, notes that the monsoon season is not yet over.