India’s Ban on Two Rice Variants Continues as Basmati Outflow Increases
Published on: December 22, 2023.
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The Indian economy is expected to experience significant growth in the coming years, with a projected growth rate of 5.4% in 2024-2025, according to a report by Motilal Oswal. This positive outlook is largely attributed to the strong growth of 7.6% in the second quarter of the current fiscal year. The report also highlights the resilience of the US economy, which has also contributed to the upward revision of growth forecasts.
The brokerage has upgraded India’s real GDP growth for the fiscal year 2024 from 6% to 6.7%. For the fiscal year 2025, the estimate for nominal GDP remains unchanged at 5.4%, assuming a broad-based slowdown. The report further predicts a revision in nominal GDP growth forecasts to 8.2% for FY24 and 10.1% for FY25, compared to the earlier estimates of 7.8% and 9.9% respectively.
In terms of inflation, Motilal Oswal has kept the Consumer Price Index (CPI) estimate unchanged at 5.6% and revised it down to 5.0% for FY25. The Reserve Bank of India (RBI) expects CPI inflation to moderate to 4.0% by the second quarter of FY25, but this is attributed to the base effect and is seen as temporary.
The report also notes that government receipts are likely to exceed budget estimates for the current year, allowing for additional government spending of up to Rs 650 billion while still meeting the deficit target of 5.9% of GDP. Motilal Oswal is confident that this target will be achieved.
Overall, the outlook for the Indian economy is positive, with strong growth projections and the potential for increased government spending. Source: [Republic World](https://www.republicworld.com/)
