India's GDP is projected to grow between 6.5% and 7% in the current fiscal year despite global challenges that may impact exports, according to the Economic Survey 2023-24 tabled in Parliament on Monday. This forecast is lower than the 8.2% growth estimated for the previous financial year.

The Reserve Bank has projected GDP growth for the fiscal year ending March 2025 at 7.2%, while global agencies like the IMF and ADB also foresee a 7% growth rate for India.

"The Survey conservatively projects a real GDP growth of 6.5–7 per cent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side," stated the document presented by Finance Minister Nirmala Sitharaman in Parliament.

The Survey highlighted that domestic growth drivers have sustained economic growth in 2023-24 despite uncertain global economic conditions. Improved balance sheets are expected to help the private sector meet strong investment demand.

However, the Survey cautioned that private capital formation, which has seen good growth over the past three years, may become more cautious due to concerns over cheaper imports from countries with excess capacity.

While merchandise exports are expected to increase with improving growth prospects in advanced economies, services exports are also likely to see further growth.

The Survey noted that a normal rainfall forecast by the India Meteorological Department and the satisfactory distribution of the southwest monsoon so far are likely to boost the agriculture sector's performance and support the revival of rural demand. However, it added that the monsoon season still has some way to go.

In summary, while the economic outlook remains positive with projected growth between 6.5% and 7%, the Survey emphasized the need for caution due to global uncertainties and potential impacts on exports and private investment.

India's GDP is projected to grow between 6.5% and 7% in the current fiscal year despite global challenges that may impact exports, according to the Economic Survey 2023-24 tabled in Parliament on Monday. This forecast is lower than the 8.2% growth estimated for the previous financial year.

The Reserve Bank has projected GDP growth for the fiscal year ending March 2025 at 7.2%, while global agencies like the IMF and ADB also foresee a 7% growth rate for India.

"The Survey conservatively projects a real GDP growth of 6.5–7 per cent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side," stated the document presented by Finance Minister Nirmala Sitharaman in Parliament.

The Survey highlighted that domestic growth drivers have sustained economic growth in 2023-24 despite uncertain global economic conditions. Improved balance sheets are expected to help the private sector meet strong investment demand.

However, the Survey cautioned that private capital formation, which has seen good growth over the past three years, may become more cautious due to concerns over cheaper imports from countries with excess capacity.

While merchandise exports are expected to increase with improving growth prospects in advanced economies, services exports are also likely to see further growth.

The Survey noted that a normal rainfall forecast by the India Meteorological Department and the satisfactory distribution of the southwest monsoon so far are likely to boost the agriculture sector's performance and support the revival of rural demand. However, it added that the monsoon season still has some way to go.

In summary, while the economic outlook remains positive with projected growth between 6.5% and 7%, the Survey emphasized the need for caution due to global uncertainties and potential impacts on exports and private investment.