Going forward, the Indian economy is expected to sustain its high growth trajectory in FY 2024-25 driven by strong momentum in fixed investments and a pickup in private consumption on the back of moderation in inflation, improvement in agri terms of trade, a good Rabi harvest and normal monsoon, as per ITC annual report for 2023-24.
Green shoots of recovery in rural markets, improving employment conditions and sustained momentum in manufacturing and services sectors augur well for consumption demand in the near term, the report said.
India continues to be acknowledged as one of the fastest growing major economies in the world with significant headroom for growth over the medium and long-term benefiting from a slew of purposeful interventions over several years.
A favourable demographic profile, increasing affluence, rapid urbanisation, and accelerated digital adoption represent some of the key structural drivers of growth of the Indian economy.
Multi-dimensional interventions undertaken by the government towards the expansion of physical and digital public infrastructure, enhancing the competitiveness of the manufacturing sector, indirect/direct taxation, and financial sector reforms along with measures to promote ease of doing business are expected to power the economy going forward, it added.
While stepped-up capital expenditure outlay and focus on infrastructure are expected to drive growth in domestic manufacturing, focus on agri-related schemes is expected to boost farmers’ welfare and rural consumption demand, spurring a virtuous investment-employment-consumption cycle.
As the Indian economy contends with uncertainties in the external environment, policy interventions focused on supporting sustainable livelihoods and fostering inclusive growth augur well for the economy. Structural support would need to be provided to sectors with large economic multiplier impact.
In this regard, the development of robust domestic agri and wood-based value chains holds special importance in the Indian context given their enormous potential to contribute to national objectives, IT annual report said.