Rating agency ICRA has said the Indian economy grew at 8.5 per cent in the April-June quarter of the current financial year. The ICRA estimate is higher than the RBI’s forecast of 8.3 per cent for the same quarter.

However, ICRA’s chief economist Aditi Nayar, according to news agency PTI, said the economy is likely to witness headwinds in the second half of the current fiscal year. She listed factors such as erratic rainfall, narrowing differentials with year-ago commodity prices, and a possible slowdown in the momentum of government capex will hamper the growth momentum. ICRA’s FY24 growth estimate for India’s GDP is 6 per cent, which is lower than the SBI’s 6.7 per cent.

According to a poll of economists conducted by business daily The Economic Times, India’s economic growth in the April-June quarter is estimated to be 7.8 per cent. Despite the global slowdown, strong domestic demand, government capital expenditure, and a growing private investment were the factors that supported growth in Q1 of FY 24.

Amid global slowdown, SBI revises India’s economic growth to 6.7 per cent in FY24

The State Bank of India has revised India’s GDP growth rate in the current financial year (FY24) to 6.7 per cent from its earlier estimate of 7.2 per cent. According to the State Bank of India, the global slowdown, the Russia-Ukraine war, and rising inflation are some of the key factors likely to hamper the economic growth of India in the current financial year.

The growth rate of the economy in the April-June quarter of the current financial year is also expected to come down to 8.3 per cent from 8.7 per cent in the previous quarter. The above-mentioned factors are likely to keep the growth momentum moderate in the second half of the year, the SBI said.

The State Bank of India’s latest projection is similar to RBI’s April 2023 monetary policy statement, in which the GDP was projected to grow at 7.2 per cent in the current financial year FY24. The international monetary fund (IMF) has also revised India’s economic growth in FY24 to 6.9 per cent from its earlier estimate of 7.2 per cent.