Improved economic growth forecast for India is based on stronger domestic indicators, increased industrial activity, and recovery in exports.
The State Bank of India (SBI) has projected that India's economy will grow around 7% in the first quarter of the current fiscal year. This growth projection exceeds earlier expectations, attributed to an improvement in various economic indicators.
According to an SBI Research Pre-Monetary Policy Committee (MPC) report, this improved outlook is a result of a broad-based pickup in high-frequency indicators during the April-June quarter. The report indicates that domestic passenger vehicle sales grew 24.1% year-on-year in June, electricity demand increased 11.5%, exports rose 15.5%, industrial credit expanded 19.2%, and the Index of Industrial Production (IIP) grew 7.3%. These figures underscore a stronger economic momentum during the quarter.
Furthermore, the SBI report notes that while the global environment remains uncertain due to the West Asia crisis, India's domestic economy has displayed resilience. The recovery in monsoon conditions is also expected to bolster economic activity in the coming months as July's surplus rainfall reduced the nationwide rainfall deficit to approximately 13%. Additionally, kharif sowing is only 4.7% lower than last year’s level, pointing towards a promising harvest season.
Source:
Akashvani News
