India’s GDP growth to moderate to 7% in Q2 FY24: ICRA
Ratings agency maintains FY24 GDP growth estimates at 6%, lower than MPC’s projection of 6.5% for the fiscal
Ratings agency maintains FY24 GDP growth estimates at 6%, lower than MPC’s projection of 6.5% for the fiscal
Further moderation in GDP is seen amid the RBI’s aggressive rate hike stance to contain inflation. The slowdown in exports and low consumer demand also contributed to low GDP growth.
Between Apr 2022 till Feb 2023, the spread between the Fed funds rate and the RBI's repo rate of cumulative increases has now declined to 192 bps, which has been constant since Dec 2022.
Growth in India is expected to pick up to 6.8% in 2024, with resilient domestic demand despite external headwinds, says IMF.
India's real GDP had grown 6.3% in constant prices in the July-September quarter of the current financial year. The overall growth in 2022-23 is projected at 6.8%.
Though lower than expectations of analysts, Q1 FY23 growth hit a one-year high, a sharp uptrend from 4.1% growth in previous quarter but lower than 20.1% in Q1 FY22
The RBI says the fundamentals remain "strong" and India is "well placed" to deal with the situation emanating from the global developments.
After an off-cycle MPC meet, RBI governor Shaktikanta Das says even as domestic economic drivers are strong, they face headwinds from global spillovers.