Indian economy likely to grow at 5.9% in FY24, says India Ratings

The rating agency expects the average retail and wholesale inflation to be at 5.4 per cent and 1.1 per cent, respectively

India’s gross domestic product (GDP) is expected to grow at 5.9 per cent in FY24 amid normalising pent-up demand, global slowdown, and higher borrowing costs, India Ratings & Research said on Tuesday.

“Although there are few positives for India such as sustained government capex, deleveraged corporates, low non-performing asset (NPA) in the banking sector, production-linked incentive scheme, and likelihood of global commodity prices remaining subdued, the agency believes that they are still not sufficient to take the FY24 GDP growth beyond 6 per cent,” it said in its latest macro-economic outlook for FY24.

The International Monetary Fund has projected the