India expected to record 6.9-7.2% GDP growth in FY24: Deloitte

The country’s current account deficit (CAD), which was at 1.9 per cent of the GDP in FY23, is expected to be reduce further in FY24, Deloitte noted.

"And, while the global economic scenario remains modest and will impact the Indian economy, the country will be able to navigate uncertainties better than the rest of the world," wrote Rumki Majumdar, economist, Deloitte India, on the company’s website.

Foreign exchange reserves are at a comfortable level of ₹568 billion—equivalent to over 10 months of import cover. At present inflation stands at 5 per cent which is albeit high as per the reserve Bank of India's target range, but much lower than what it used to be a decade back, Deloitte noted.

"High inflation is expected to persist till H2 [the second half of] FY2024, due to high food and volatile oil prices and will soften thereafter," Majumdar said.

Digitisation, high-end manufacturing capacity addition and improved competitiveness through exports formed the three pillars of India's decade-long vision and the country is witnessing the outcomes translating into sustainable growth, she noted.

The country, however, needs to be more competitive and further scale up commoditised products by taking advantage of its large domestic market, she added.

ALCHEMPro News Desk (DS)