Indian Economy To Grow At 7.5-8% In FY24: FICCI

New Delhi, Dec 11 (KNN) The Indian economy is expected to grow by 7.5 per cent to 8 per cent in the current fiscal year Anish Shah, President, the Federation Indian Chambers of Commerce and Industry (FICCI), said on Monday.

During an interview with PTI, Shah said that due to strong growth momentum, positive sentiments, and increase in private investments, the economy will 

grow by 8 per cent in the next fiscal year (2024-25) as well.

The FICCI President cautioned that geopolitical factors could be a concern for India’s growth prospects.

“We have seen great growth numbers so far at 7.8 per cent, 7.6 per cent. I expect that to continue because we have got strong momentum. We are seeing multiple companies investing, adding capacities, something that Mahindra group has done as well,” he said.

Notably, the Indian economy logged a growth rate of 7.8 per cent in the first quarter of FY24, and 7.6 per cent in the quarter ended September 2023. The growth rate for the first half of the current fiscal year came out to be 7.7 per cent. 

Regarding the economy’s pressure points, Shah said the main pressure points remained outside India.

 “We are seeing stress with regard to Israel and Gaza, added to what is happening in Ukraine. Our hope is that it does not expand or accelerate any further from there,” he stated.

Shah stated that the government needs to maintain the growth momentum to deal with the issues arising globally. 

Expressing his views about the RBI’s decision to keep interest rates unchanged for the fifth consecutive time, the he said, “ One needs to give lot of credit to RBI for being pro-active, because they have acted early. That has helped. More important factor is to have inflation under control, than to reduce rates. It has worked so far. I would rely on the experts of the RBI to manage the economy which they have done very well so far.”

Shah further noted that once the economy is more stable and on a good track with a long-term perspective, the industry would welcome a reduction in rates. 

(KNN Bureau)