The Organization for Economic Co-operation and Development (OECD) has raised India's growth outlook for the fiscal year 2024-25 (FY25) to 6.2%, up from the earlier estimate of 6.1%.

Economy Business

The Organization for Economic Co-operation and Development (OECD) has raised India's growth outlook for the fiscal year 2024-25 (FY25) to 6.2%, up from the earlier estimate of 6.1%. In terms of inflation management, the Reserve Bank of India (RBI) is expected to start lowering interest rates from mid-2024 to reach 5.5% by the end of 2025. For 2025-26, OECD has kept its growth forecast for India unchanged at 6.5 percent. The interim Budget has pegged the Centre’s capital expenditure target for the next fiscal at `11.1 trillion, up 17% from the revised estimate of `9.5 trillion for FY24. The 17% projected growth is the lowest in five years.


      The NSO has projected private final consumption expenditure (PFCE) to grow merely 4.4% in FY24, at the slowest rate since FY03, due to insipid rural consumption. This excludes the pandemic year FY21, when PFCE had contracted 5.2% on year.

      As per India Ratings and Research, rural wages of agriculture and non-agriculture workers have grown merely 0.6% and 0.3% in H1FY24, while urban wages have grown by 5.6%, and that of corporate India by 7.9%.

     

 

     


          ____________________________