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Indian Economy On The Verge Of Take-Off: RBI Report

Additionally, the RBI forecasts a 7.2% real GDP growth for the financial year 2024-25.

The Reserve Bank of India’s report highlights a global wave of optimism about India’s economic prospects. Major financial institutions predict a substantial increase in growth.

Green energy projects worth about Rs 700 billion are set to start operating this year. It’s a significant investment milestone for a single year. Projections suggest that additional project investments could reach Rs 765.2 billion by 2025-26, driven by policies supporting sustainable energy sources.

The International Monetary Fund (IMF) has raised India’s GDP growth forecast by nearly 2% points for the fiscal year 2023-24. The IMF’s April 2024 World Economic Outlook points to strong domestic demand and a growing working-age population as key factors behind the anticipated robustness in 2024 and 2025.

Similarly, the Organization for Economic Cooperation and Development (OECD) in its May 2024 Economic Outlook highlighted recent positive indicators and strong investment trends, reinforcing this optimistic outlook.

India’s power sector has achieved full electrification, with integration into a unified national grid. Rural areas now benefit from 20 hours of electricity daily, while urban areas receive power for 23.5 hours.

Moreover, India has emerged as the world’s third-largest renewable energy producer, emphasizing its commitment to sustainable development.

The digital revolution has played a crucial role, with India leading in digital transactions globally and broadband connectivity reaching over 93% of villages.

Private investment is flourishing, spurred by robust mergers and acquisitions (M&A) activity, particularly in the energy domain. Although outbound deals have seen a decline, cross-border investments are increasing.

As the seventh-largest exporter of services globally and the second-largest among developing nations, India’s business services sector is expanding, bolstered by global capability centres.

The retail sector is experiencing a surge, evidenced by significant year-on-year sales growth in various categories during Q4 2023-24, including sports goods, food and grocery, apparel, footwear, and quick-service restaurants.

Inflation has shown signs of moderation, with the Consumer Price Index (CPI) recording a 4.8% year-on-year increase in April 2024, down from 4.9% in March.

India is projected to be among the top 10 economies for foreign direct investment (FDI) momentum in 2024, as per FDI Intelligence.

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