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According BoB Eco Research, India's GDP expected to grow ______ in FY 2023-24.
A)
5.2% to 6%
B)
6% to 6.5%
C)
6.3% to 6.9%
D)
6.6% to 7.1%

Correct Answer :   6% to 6.5%


India’s GDP is expected to grow in the 6 - 6.5% range in FY24, with agriculture growth continuing at a healthy pace, a recovery in industrial growth and the services sector remaining resilient, according to Bank of Baroda’s economic research department (ERD).

The projection takes into account an expected slowdown in the global economy, which may impact the external sector, and the continued resilience of the domestic economy.

RBI Projects 6.4% Growth for FY24 : Governor Shaktikanta Das of the Reserve Bank of India (RBI) has projected a real GDP growth rate of 6.4% for FY24. He cited increased rabi output, which enhances prospects for agriculture and rural demand. Additionally, the sustained recovery of contact-intensive sectors is expected to support urban consumption. Das also highlighted broad-based credit growth, improved capacity utilization, and the government’s focus on capital spending and infrastructure as factors that will bolster investment activity.

CARE Ratings Forecasts 6.1% GDP Growth in FY24 : CARE Ratings, a credit rating agency, estimates India’s economic growth for FY24 to be 6.1%. The agency emphasizes the government’s emphasis on capital expenditure (capex) and the growing intent of the private sector to invest, which should support investment demand. However, lower external demand and rising interest rates pose risks to investment revival. For FY23, CARE Ratings projects GDP growth at 7%, taking into account improving rural demand, rising rural wages, and the need for domestic demand to accelerate.

Moody’s Predicts 6.5% Growth for 2024 : Moody’s Investors Service, a global credit rating agency, forecasts India’s growth rate to be 6.5% for 2024 and 5.5% for 2023. Moody’s attributes the primary drivers of economic growth in these years to the decisions made by central banks regarding interest rates. They expect global economic growth to slow in 2023 due to cumulative monetary policy tightening. Moody’s forecasts a gradual improvement in G20 global economic growth, from 2.0% in 2023 to 2.4% in 2024..

Source : The Hindu Businessline

Published On : May 29, 2023
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