Ind-Ra raises GDP growth forecast to 6.2%

Mumbai: India Ratings and Research on Wednesday upwardly revised its FY24 real GDP growth estimate to 6.2 per cent from the 5.9 per cent expected earlier. The domestic ratings agency attributed its revision to a variety of factors, including the government’s capital expenditure, deleveraged balance sheets of India Inc and banks, subdued global commodity prices and the prospect of private capital expenditure picking up.

India Ratings, however, also flagged some constraints on Gross Domestic Product (GDP) growth in the current fiscal year before the general elections, including a slip in global growth, which has hit Indian exports, tighter financial conditions upping cost of capital domestically, a deficit monsoon, and tepid manufacturing growth. “All these risks will continue to weigh and restrict India’s GDP growth to 6.2 per cent in FY24, and the quarterly GDP growth, which came in at 7.8 per cent in the June quarter, is slated to slow down sequentially in the remaining three quarters of FY24,” its principal economist Sunil Kumar Sinha said.