The Growth Remains Strong Accompanied by Key Risks
The upcoming monetary policy committee (MPC) meeting of the Reserve Bank of India (RBI), slated for this week, marks the first meeting of this fiscal year. The meeting is set against a backdrop of stronger-than-expected economic performance despite pressures in specific segments of the economy. Robust economic performance is underscored by the fact that FY24 growth is now seen at 7.6%, as per the advanced estimates of MOSPI, led by strong growth in the investment demand. Gross Fixed Capital Formation (GFCF), a proxy for investment growth, is projected to expand by a healthy rate of 10.2% in FY24. Regarding sectoral growth, industrial growth is estimated to outshine with a projected expansion of 9% in FY24, with an acceleration from 2.1% in the previous year.
