By
Fibre2Fashion
Published
Oct 12, 2023
India’s growth rate is anticipated to hold steady at 6.3 per cent for both fiscal 2023 (FY23) and fiscal 2024, according to the International Monetary Fund’s (IMF) World Economic Outlook for October 2023. This represents an upward revision of 0.2 percentage points for FY23, attributed to stronger-than-expected consumption in the April-June period.
However, the growth for emerging and developing Asia is anticipated to increase from 4.5 per cent in 2022 to 5.2 per cent in 2023, before a dip to 4.8 per cent in 2024.
This denotes downward revisions of 0.1 and 0.2 percentage points for 2023 and 2024, respectively, in comparison to the projections made in July. A significant factor in this revision is the lower growth forecast for China. The country’s growth prediction has been cut by 0.2 percentage points for 2023 and by 0.3 percentage points for 2024, projecting it at 5.0 per cent in 2023 and 4.2 per cent in 2024.
On the domestic front, the Reserve Bank of India (RBI) has set its expectations for the consumer price index (CPI)-based inflation at 5.4 per cent for the current fiscal. Furthermore, the RBI foresees the GDP growth rate to be slightly higher than the IMF’s projection, positioning it at 6.5 per cent.
