Indian Economy Set for Robust Growth in FY2024-25: NCAER Report

The Indian economy is projected to grow above 7%, potentially reaching 7.5%, in FY2024-25, driven by a stable consumption and investment demand, and reduced electoral uncertainties. The National Council of Applied Economic Research (NCAER) attributes this growth to factors such as a normal monsoon and a strong Union Budget.

The Indian economy is poised for robust growth, with the National Council of Applied Economic Research (NCAER) estimating a growth rate above 7% in the current fiscal year, potentially reaching 7.5%.

According to NCAER's July 2024 Monthly Economic Review, real GDP grew by 8.2% in FY2023-24, driven by stable consumption and improving investment demand. NCAER Director General, Poonam Gupta, highlighted that factors like high-frequency indicators, a normalized monsoon, and reduced electoral uncertainty are contributing to the anticipated growth.

Gupta praised the Union Budget 2024-25 for its commitment to fiscal prudence, setting the fiscal deficit target at 4.9% of GDP and capital expenditure at 2.4%. The NCAER-NSE Business Confidence Index (BCI) also saw an increase, indicating improved business sentiments, while the IMF and ADB projected India's growth to be around 7% for FY2024-25.