India to Maintain Fast Economic Growth: Reuters Poll

India to Maintain Fast Economic Growth: Reuters Poll

VoM News Desk | January 24, 2024 | 11:40 AM IST | India | Follow on Google News

India to Maintain Fast Economic Growth: Reuters Poll/Reuters

India to Maintain Fast Economic Growth: Reuters Poll

India is projected to retain its position as the fastest-growing major economy in the coming years, supported by robust government spending, according to a Reuters poll of economists. Strong government spending, particularly on infrastructure projects, has been a key driver of economic growth. The poll forecasts a growth rate of 6.9% for the current fiscal year and 6.3% for the next fiscal year. Despite a rise in inflation to 5.69% in December, economists expect it to subside soon. The survey indicates concerns about enduring sluggishness, especially in private consumption, a critical component of economic growth.

Key Points:

• India is expected to grow at 6.9% in the current fiscal year, with a small upgrade from a previous forecast of 6.7%.
• Growth for the next fiscal year is projected to be 6.3%, consistent with the previous poll.
• Inflation rose to 5.69% in December, driven by food prices, but economists anticipate a decline in the short run.
• The survey indicates concerns about enduring sluggishness in the economy, particularly in private consumption.

Economic Outlook and Consumer Inflation:

• The poll suggests that despite challenges, India’s economic momentum remains strong, driven by government spending.
• Consumer inflation is expected to average 5.4% and 4.7% in the current fiscal year and the next.
• Majority of economists believe the risk of a significant resurgence in inflation over the next six months is low.

Employment and Consumption:

• Economists express optimism about employment prospects, with 25 out of 28 respondents expecting an improvement in the next six months.
• Concerns about weakness in private consumption demand are noted, indicating the need for measures to enhance employment and disposable incomes.

Overall, while India’s economic growth remains robust, attention is drawn to the challenges in sustaining private consumption and the importance of addressing employment concerns to support long-term economic health.

VoM News Desk

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