India To Maintain Fastest-Growing Major Economy Status In 2023-24: Finance Ministry Report

India is on course to maintain its position as the world's fastest-growing major economy in the fiscal year 2023-24, according to a report from the Finance Ministry and reported by Indian Express.

This positive outlook is credited to India's strong domestic foundations and favourable inflation expectations.

Recent developments in the Persian Gulf, highlighted in the Monthly Economic Review for September, have added to global uncertainties.

The report notes that the US stock markets currently carry more downside risk than upside, which may impact other markets as well.

The Finance Ministry underscores that tense geopolitical situations can heighten global risk aversion, affecting economic activities in other countries, including India.

The report highlights India's positive macroeconomic outlook for the fiscal year 2023-24, supported by strong domestic fundamentals.

Factors such as growth in various industries, a robust housing market, and increased industrial capacity utilisation are driving private consumption and investment demand.

Moreover, core inflation is consistently decreasing, and food inflation has also reduced, the report noted.

India's external account remains strong, marked by a reduced trade deficit and healthy foreign exchange reserves.

Also, surveys by the Reserve Bank of India on manufacturing, consumer confidence, employment, and inflation expectations reveal positive trends, reinforcing this optimistic outlook.

The report concludes that India is likely to maintain its position as the world's fastest-growing major economy in FY24, in line with International Monetary Fund projections.