“The Q1 industrial growth remained buoyant, especially construction and consumer non-durables; however, the agricultural growth was muted and the services growth was sluggish,” NIPFP said
New Delhi, NFAPost: India’s economic growth is expected to slow down to 6% in this financial year (FY24) from 7.2% in FY23 due to headwinds in the global economy, the National Institute of Public Finance and Policy (NIPFP) said in a mid-year macroeconomic review.
“The Q1 industrial growth remained buoyant, especially construction and consumer non-durables; however, the agricultural growth was muted and the services growth was sluggish,” it said.
The retail inflation is also expected to remain below the 6% limit at 5.1% in this financial year, due to the lagged effect of monetary policy transmission and broad-based decline in food, energy, and core inflation.
The Reserve Bank of India (RBI) kept the real GDP forecast for FY24 unchanged at 6.5% on the back of higher rural and urban growth, increased investment activity, and government’s plan of higher capital expenditure.
However, the central bank revised the inflation figure to remain at 5.4% in FY24, with inflation for Q2, Q3 and Q4 to remain at 6.2%, 5.7% and 5.2%, respectively.
