India is poised to remain the fastest-growing major economy in 2024-25, Chief Economic Adviser V Anantha Nageswaran stated in a press conference after the tabling of the Economic Survey in Parliament on Monday. The Economic Survey projects India to grow at a rate of 6.5-7.0 percent in 2024-25.
Global institutions, including the IMF, OECD, World Bank, S&P, ADB, and Fitch, have forecasted India’s growth within a range of 6.6-7.2 percent.
The International Monetary Fund (IMF), in its latest outlook, raised India’s growth projections for 2024 from 6.8 percent to 7 percent, maintaining India’s status as the fastest-growing economy among emerging markets and developing economies.
According to official data from the Indian government, the country’s GDP grew at an impressive 8.2 percent during the financial year 2023-24. The economy expanded by 7.2 percent in 2022-23 and 8.7 percent in 2021-22.
Additionally, the CEA projected that India’s per capita income is expected to rise from around Rs 2 lakh in 2022-23 to Rs 14.9 lakh in 2046-47.
Nageswaran pointed out that household savings in physical assets have been increasing over the past three financial years through 2023-24. Household savings in physical assets rose from 8 percent in 2020-21 to 12.9 percent in 2022-23.
“Households are not in distress, they are investing in financial assets that have done very well. Financial assets of households are not marked to market so households are doing quite well in the aggregate,” he said.
India needs both banks and capital markets to provide the required finances sourced from a sustained high level of household savings, according to the Survey.
(ANI)