India poised to be most resilient economy, grow at 7.4-7.5% in 2023-24: industry body PHDCCI

Business Thursday 11/January/2024 08:39 AM
India poised to be most resilient economy, grow at 7.4-7.5% in 2023-24: industry body PHDCCI

New Delhi: India is poised to be the most resilient economy among the top 10 leading economies in 2024 and 2025, said the industry body PHD Chamber of Commerce and Industry, in a report after it conducted an analysis.

The industry body's analysis was based on key macroeconomic indicators, including GDP growth, export growth, gross national savings, total investments, and the debt-to-GDP ratio.

With a consistent GDP growth rate exceeding 7 per cent over the past two years and a projected continuation of this trend in the current year too, the economy is expected to surpass USD 4 trillion in 2024 and thereafter move to next orbit in 2025, said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, in a press statement.

India as a country is making significant strides for its futuristic growth trajectory, said Agrawal, pegging GDP growth for the current financial year ending March 2024 at 7.4-7.5 per cent.

The Indian economy is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy, the National Statistics Office said on January 5. India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22.

The first advance estimates of GDP by the statistical office come after the Reserve Bank of India (RBI) raised its growth forecast last month by 50 basis points to 7 per cent from an earlier estimate of 6.5 per cent.

According to the industry body PHDCCI, India's economy remains resilient despite the global headwinds.
"Geopolitical conflicts are reshaping the world, disrupting global value chains, and causing inflationary pressures. However, India's geopolitical significance is growing significantly, earning praise from international institutions," said Sanjeev Agrawal.

PHDCCI, citing experts, said markets are expected to remain resilient and are expected to make new highs in 2024. The Nifty 50 index and Sensex are likely to significantly surpass 25,000 and 75,000 points, respectively in 2024, benefiting from the government's continued reforms.

The inflation trajectory is expected to be around 4.5 per cent on an average in 2024, PHDCCI said in the report. The Reserve Bank of India is expected to cut the repo rate by 100 basis points to bring the level of repo rate at 5.5 per cent by the end 2024.

The RBI monetary policy committee, in its December meeting, unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the fifth straight occasions. The repo rate is the rate of interest at which the RBI lends to other banks.

While deliberating the policy statement Friday morning, RBI Governor Shaktikanta Das attributed declining inflation as the reason behind maintaining the status quo policy stance.