Just days ahead of the anticipated presentation of the interim budget on February 1, the Indian government has released estimates indicating a positive outlook for the country’s economy. The review of the Indian economy forecasts a growth rate of 7% in the fiscal year 2024 (FY24), with optimistic projections extending into FY25. It’s noteworthy that this review, titled ‘Indian Economy – A Review,’ is distinct from the upcoming Economic Survey of India, which will be presented after the general elections.
The projections come as Finance Minister Nirmala Sitharaman is set to unveil the interim budget, marking the final budget before the Lok Sabha polls scheduled for the summer of 2022. The review attributes the robustness in domestic demand, particularly in private consumption and investment, to government reforms and measures implemented over the past decade.
According to the government’s first advance estimates, India’s economy is expected to grow at a rate of 7.3% in the current financial year, following growth rates of 7.2% in 2022/23 and 8.7% in 2021/22. Notably, various global brokerages, including S&P Global Ratings, express optimism about India’s economic prospects, projecting it to maintain its status as the fastest-growing major economy for the next three years.
This positive trajectory positions India on the path to potentially becoming the world’s third-largest economy by 2030, surpassing Japan and Germany. The projections highlight the potential long-term growth and economic stability of the country.