Global rating agency S&P Global Ratings has revised India s Gross Domestic Product (GDP) growth projection for financial year 2024 to 6.4 percent from 6 percent earlier on the back of strong domestic tailwinds.
S&P Global Ratings upgraded India's growth projection for the current financial year on domestic momentum but lowered its outlook for the next financial year citing subdued global growth and base effect.
A FICCI survey indicates an accelerating growth momentum in the second quarter of the current fiscal, with 80% of respondents reporting increased orders and demand in July-Sept 2023-24. Manufacturing s average capacity utilization is at 74%, slightly higher than previous quarters, reflecting sustained economic activity.
IMF in July had estimated India's GDP forecast at 6.1 per cent for 2023-24. However, this is lower than the RBI's latest estimate of 6.5 per cent for the current financial year.
India's central bank left its benchmark interest rate unchanged for the fourth straight session on Friday but cited high inflation as a major risk to stability and sustainable growth and raised the possibility of open market bond sales to absorb excess liquidity.