India FY 24 GDP Growth Projection: Rising inflation in the whole world including India has broken the back of common people. To control the rising inflation, central banks around the world, including the Reserve Bank of India, are continuously increasing their interest rates. This has a direct impact on the country’s Gross Domestic Product (GDP). Recently, a report has come about India’s GDP in the financial year 2023-24. It has been claimed in this report that the country’s GDP may come down to 5.5 percent in the next financial year. In such a situation, this is not good news at all for India on the economy front. At the same time, it is estimated to be 6.9 percent in the current financial year 2022-23. Switzerland’s brokerage company UBS India (UBS India report on Economy) has published its report on India’s GDP.
For what reasons can GDP decrease?
According to economists of UBS India, the reason for the decline in India’s GDP is the global slowdown and strict monetary policies of many countries. In the year 2022, due to Corona epidemic and Russia-Ukraine war, inflation has increased rapidly in the whole world including Europe, America. Along with this, due to the Corona lockdown in China, the supply chain of the whole world has been badly affected. In such a situation, the fear of economic slowdown in the whole world has increased and its impact will be less on India. India has become the fifth largest economy in the world (5th Largest Economy of the World). In such a situation, the impact of supply chain disturbances and global recession can be seen on India in the coming days.
India’s GDP growth can be 5.5 percent
UBS India has claimed in its report that the impact of RBI’s strict monetary policy on demand in the domestic market can be clearly seen in the coming days. Due to this, a decline in India’s GDP can be recorded in the financial year 2023-2024. GDP will be 6.9 percent in the financial year 2022-23, which will come down to only 5.5 percent next year. At the same time, in the financial year 2024-25, India’s GDP is estimated to grow by 6.00 percent.
RBI is continuously increasing the repo rate
It is worth noting that in the last 7 months, the Reserve Bank of India has continuously changed its repo rate. From May till now, the Reserve Bank has increased its interest rates by a full 1.90 percent. The repo rate has increased from 4.00 percent to 5.90 percent. In such a situation, due to rising interest rates, the burden of EMI is increasing on the people. Along with this, its bad effect can also be seen on domestic demand. The interest rates on the EMI of people’s home loan, car loan, education loan are increasing rapidly.