Indian economy is expected to surpass a growth rate of seven percent in the 2023 fiscal year, making India one of the fastest growing economies in the world. The most important driving force being the manufacturing industry.
Strong fourth quarter
Locally, domestic consumption and investment will benefit from a stronger outlook for agriculture and agriculture-related activity, strengthened business and consumer confidence and strong credit growth. The supply and cost side will benefit from the easing of inflationary pressure, says a report from the State Bank of India (SBI).
SBI’s report “Ecowrap”, which came out on Friday, estimates that the biggest growth will come in the fourth quarter with a strong 5.5 percent. This will bring annual growth up to 7.1 percent.
This is 0.1 percent higher than the estimates provided by India’s National Statistics Office (NSO) in January.
According to Ecowrap, the varied growth patterns emerging across the globe present policymakers, legislators and economists with unprecedented challenges, not only in the current year, but also in 2024 and 2025.
Amid the global uncertainty, the SBI Research report says that India’s economy is expected to follow its own path where the focus will be on stimulating the forces that drive growth as well as promoting resilient manufacturing, while the service sector will be strengthened to improve efficiency.
For 2023–2024, the Reserve Bank of India estimates GDP growth of 6.5 percent.