ICRA Projects 7.8% GDP Growth For FY24
ICRA Chief Economist, Head-Research & Outreach Aditi Nayar said the lower volume growth coupled with diminishing gains from commodity prices dampening the profitability of some of the industrial sectors is expected to dampen India's GVA growth in Q4 FY2024.
Domestic rating agency firm ICRA said on Tuesday that it expects India's GDP growth to be 7.8% for the financial year ending in March 2024.
The agency forecasts that GDP expansion will slow to 6.7% in the March quarter, down from 8.4% in the previous quarter. This is attributed to lower volume growth and reduced gains from commodity prices affecting the profitability of some industrial sectors, according to a statement by ICRA's Chief Economist, Aditi Nayar.
Nayar also mentioned that urban consumption is expected to have remained strong, though uneven, in the fourth quarter of the 2023-24 fiscal year.
The government is expected to announce the GDP data on May 31.
The statement noted that investment activity was healthy in the March quarter, showing a mixed trend in various investment-related indicators.
There was a significant increase in new project announcements, reaching the second-highest quarterly level, due to state investor meetings in January 2024 and a notable rise in the completion of both private and government-led projects, ICRA noted.
However, some investment-related indicators moderated in the March quarter compared to the third quarter, and there was a slowdown in new project proposals in February and March 2024 compared to January 2024, it said.
