The Asian Development Bank retained India’s economic growth forecast at 6.4%. ADP credits domestic demand for supporting the nation’s recovery. ADB’s reports come after the Reserve Bank of India’s Monetary Policy Committee projected GDP growth of 2023-24 at 6.5 percent.
The optimistic growth forecast as reported by PIB is due to the economy recovering remarkably, and this is credited to the Micro, Small, and Medium Enterprises (MSME) Sector has been remarkably high, over 30.5 percent, on average Jan – Nov 2022.
While several economies experienced a rebound in domestic consumption during the pandemic, India stood out for its remarkable scale of recovery. This rebound had a significant impact on the rise in domestic capacity utilization. In November 2022, domestic private consumption continued to remain robust. Furthermore, in December 2022, the Reserve Bank of India (RBI) released its latest survey of consumer confidence, which indicated an improvement in sentiment regarding current and future employment and income conditions.
PIB further expands that there was a surge of exports in FY22, and in the first half of FY23, the gears saw a huge shift and the exports increased. The Economic Survey 2022-23 was presented in Parliament by Smt. Nirmala Sitharaman, the Union Minister for Finance & Corporate Affairs. According to the survey, the baseline GDP growth in real terms for FY24 is projected to be 6.5%. This projection aligns closely with estimates provided by renowned international organizations like the World Bank, the IMF, and the ADB, as well as with the domestic estimates provided by the RBI.
The growth is expected to surge as India is poised to experience a robust credit disbursal and capital investment cycle as the corporate and banking sectors’ balance sheets strengthen. This development is expected to bolster economic growth significantly. Moreover, the expansion of public digital platforms and the implementation of path-breaking initiatives like PM Gati Shakti, the National Logistics Policy, and Production-Linked Incentive schemes geared towards enhancing manufacturing output will further support the country’s economic growth.
