(MENAFN- KNN India)
CRISIL forecasts modest 6% GDP growth of Indian economy in FY24
New Delhi, Mar 17 (KNN) In the next fiscal year the Indian economy is expected to witness 6 per cent growth, said Crisil on Thursday stating that it is in with consensus estimates, driven by an increased capex by the private sector.
The private sector capex is expected to deliver double-digit revenue growth for the second year on the trot, it added.
For the current financial year, the rating agency has projected the economy to grow 7 per cent.
But many private forecasters have a lower outlook, ranging from 6.5 to 6.9 per cent.
The agency also sees the economy averaging 6.8 per cent growth over the next five fiscals.
While the corporate revenue to log in a double-digit rise again next fiscal, expects Crisil.
In its annual growth forecast, Crisil Chief Economist DK Joshi said a complex interplay of geopolitical events, stubbornly high inflation, and sharp rate hikes to counter that have turned the global environment gloomier.
On the domestic front, the peak impact of the rate hikes-250 basis points since May 2022, which has pushed interest rates above pre-COVID levels, will play out more in the next fiscal.
Retail inflation is expected to average 5 per cent in FY24 from 6.8 per cent in FY23, owing to the high-base effect and some softening of crude and commodity prices, Joshi said.
However, a good rabi harvest would help cool food inflation, provided the monsoons are normal while the slowing economy should moderate core inflation.
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