New Delhi: In market-oriented economies, growth is an economic deity all governments worship. In the global theatre, India is keenly watched because the economy is clocking a growth rate that is the fastest among G-20 countries. While growth rates of the GDP hog headlines all over the world, it is interesting to watch the different predictions of growth rates that the Indian economy will achieve in the current financial year. India is already the 5h largest economy in the world and Prime Minister Narendra Modi has resolved to make it the 3rd largest, after the US and China, by 2027.
To be sure, on the path of the economic journey that India has undertaken growth is the first milestone on which a lot of vital parameters such as employment, loans, exports, government revenue, investment and consumption depend. Therefore, it becomes important for one to keep an eye on the growth forecast of the economy by expert agencies.
India fastest growing among the largest economies
The International Monetary Fund (IMF) has predicted that the Indian GDP would grow at 6.8 per cent in the current financial year. IMF made the statement in end-April and said that government investment would be the driver.
In the second week of June, the World Bank said the Indian economy might grow at a slightly smaller pace – 6.6 per cent. “India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate, the World Bank said in a report.
Robust investment and rising consumer confidence could drive India’s GDP to a growth rate of 7 per cent in FY25, said the Philippines-based Asian Development Bank.
During the monetary policy committee review meeting in June, the Reserve Bank of India revised the growth rate of the economy from an earlier prediction of 7 per cent to 7.2 per cent.
In May, the Organisation for Economic Co-Operation and Development (OECD) said India’s GDP would grow by 6.6 per cent in FY25, the same forecast it had for FY24.
Leading MNC financial services provider Goldman Sachs has forecast a rate of 6.6 per cent, the same as the World Bank and OECD. S&P Global Ratings believes it will be a shade higher at 6.8 per cent.
In January this year, the Union finance ministry had said that the economy would achieve nearly 7 per cent growth in FY25.
How rating agencies view India’s growth
Moody’s Investors Service has said that India will grow at 6.6 per cent this year while will slightly decelerate to 6.2 per cent in FY26. Another rating agency major Fitch believes India would grow at 7 per cent. CRISIL has pegged the GDP growth rate at 6.8 per cent in FY25.
One of the country’s leading chambers of commerce, CII sounded the most optimistic. Its president Sanjiv Puri said on June 14 that helped by the tailwinds of a good monsoon, an improved external situation and reforms by the Modi government, the country could clock a growth of 8 per cent in the current financial year. But no matter what the final figure, India is poised to grow on the wings of investment and a robust domestic market.
After a remarkable general election when the NDA formed the government for the third time in a row, it is interesting to have a one-stop look at what the predictions about growth in the economy are. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
