- Economic growth in India is predicted to be between 8.3% and 8.5% in Q1 FY24.
- Real GDP increased by 6.1% over the corresponding March quarter in the prior year.
- Widening profit margins in the business sector are acting as a tailwind for growth prospects.
In the April to June quarter of 2022–23, economic growth in India is predicted to be between 8.3% and 8.5%, exceeding the Reserve Bank of India’s (RBI) prediction of 8%.
According to economists, actual growth may be greater, at 8.3% to 8.5%. Later this month, official information on India’s economic growth in the first quarter of 2023–24 will be made available.
India’s GDP growth
Real GDP increased by 6.1% over the corresponding March quarter in the prior year. The State Bank of India (SBI) and ICRA both predict greater economic growth in the upcoming quarter, attributing their predictions to the Center’s and the states’ capital expenditures.
Moreover, the rating agency predicted that the reduced base, which had shrunk by almost a quarter in the first quarter of FY21, will contribute to higher growth in the current quarter.
The largest lender, according to Soumya Kanti Ghosh, group chief economic adviser at SBI, analyzed 30 high-frequency indicators to determine its estimate of 8.3% growth in the first quarter.
Widening profit margins in the business sector are acting as a tailwind for the growth prospects, and the services sector has continued to generate better growth.
However, they had different opinions on the economic growth for the entire fiscal year; SBI pegged it at 6.7% while ICRA predicted it at 6%, both much lower than the Reserve Bank of India’s forecast of 7.2%.
