With the probability of recession in major industrial countries this year, multiple economic indicators suggest subsiding downside risks to global growth.

India is likely to grow at 6-6.3 per cent in this fiscal, according to Deloitte India, which recently forecast growth of over 7 per cent over the next two years if global uncertainties recede.
Urban demand conditions have remained resilient and lagging rural demand has also been rising lately.
Investment is also showing traction, its economic outlook noted.

“Amid continuing global uncertainties, India continues to see strong economic activity,” it said.

“Keeping in view the resilience shown by the economy, Deloitte is optimistic about the outlook and has put out its expectation for this year and the next,” Deloitte India noted in its latest economic outlook noted.

“India enjoys a Goldilocks moment currently. Our growth forecasts for FY 2023-24 remain similar to our April forecast, except that higher-than-expected growth in FY2022-23 has raised our base for comparison. That said, we have raised our lower limit of the range given the buoyancy in the economy,” Deloitte India economist Rumki Majumdar was quoted as saying by a news agency.

Urban demand conditions have remained resilient and lagging rural demand has also been rising lately. Investment is also showing traction. The credit-deposit ratio has continued to improve strongly from the lows of the pandemic despite the rising interest rates.

India has had better success in taming inflation with relatively lesser policy tightening, Deloitte said.

“We expect the fall in consumer prices to be short-lived as demand picks up along with food prices and the uncertainties around prices remain high. A quicker rebound in the supply side will be of utmost importance for keeping prices under check in the long run,” Majumdar added.

Fibre2Fashion News Desk (DS)