FICCI expects the economy to grow at 7.5-8% this fiscal year, 8% in 2024-25
Federation Indian President-elect Anish Shah said the industry expects the economy to grow at 7.5 to 8 per cent in the current financial year and 8 per cent in 2024-25 due to strong growth momentum, positive sentiments and rising private investment. Chambers of Commerce and Industry (FICCI) said on Monday.
However, he said, there will be geopolitical pressure points that could have an impact on India’s growth prospects.
“We have seen great growth of 7.8 per cent, 7.6 per cent so far. I expect that to continue because we have got strong momentum. We are seeing a lot of companies investing, adding capabilities, something that Mahindra The group has also done it.
Shah, who is also the group CEO and managing director of Mahindra, said, “We expect the growth pace to continue at 7.5 per cent to 8 per cent in the current financial year and for the next year, I expect 8 per cent or more.” I will.” Mahindra, in an interview with PTI.
The Indian economy registered a growth of 7.8 percent in the first quarter (April-June 2023-24) and 7.6 percent in the second quarter (July-September 2023-24). The growth rate in the first half (April-September) is 7.7 percent.
On pressure points on the economy, Shah said, “The primary pressure points are outside India. We are seeing tensions with respect to Israel and Gaza, what is happening in Ukraine. Our hope is that there will be no further expansion or acceleration of this. ” From there. For everyone’s sake, he gets peace.” He said another concern is the economic problems faced by Western countries. “We don’t think the problems there have subsided yet. The interest rates there are much higher than what we have seen in India. If there is greater economic impact in the Western world, it will impact India, Shah said, “we see these as two major concerns.”
He said that the government needs to continue the pace of development to deal with the problems arising from abroad. Moreover, he said, many Indian companies have depleted balance sheets and should be prepared to play a bigger role if the world faces an economic crisis.
Regarding Indian companies, Shah said, “Sentiment is positive, investment is increasing and capacity addition is continuing… The pace of investment will pick up further as demand continues and the economy continues to grow.” Responding to questions on the Reserve Bank of India’s decision to keep interest rates unchanged for the fifth consecutive time, the new FICCI chief said, “One needs to give a lot of credit to the RBI for being proactive, because they have acted quickly. Help has come.” , A more important factor than lowering rates is keeping inflation under control. It has worked so far. I will trust the experts of RBI to manage the economy which they have done very well so far.” He further said that once the economy is on a good path from a long-term perspective and there will be scope for rate cuts, ” The industry will welcome it at that time”.
It is noteworthy that the Reserve Bank has not tampered with the short-term interest rate (repo) since February 8, 2023. It has kept the interest rate unchanged at 6.5 percent for the fifth consecutive time in its bi-monthly meeting. The monetary policy review which was announced earlier this month.
Shah said the focus of FICCI activities will be on Make in India initiatives, women-led development, agricultural prosperity and sustainability to help the country move towards the goal of ‘Developed India’ by 2047.
