Shillong, February 1: Anticipated to maintain fiscal discipline, Finance Minister Nirmala Sitharaman’s Interim Budget 2024, scheduled for 11 am today, is expected to continue prioritizing significant investments in infrastructure and initiatives for the agricultural sector and rural communities.
India’s Robust Economic Growth
As per IANS, with the economy surging at over 7%, tax collections have seen an upswing, providing room for the Finance Minister to balance fiscal deficit while fostering economic growth and stability. The International Monetary Fund (IMF) recognizes India as a star performer, projecting it to contribute over 16% to global growth, attributed to key reforms in sectors like digitization and infrastructure.
Impressive GDP Growth
India’s real GDP registered a remarkable 7.7% growth in H1 2023-24, outpacing major economies. Projections by the National Statistical Office estimate a 7.3% real GDP growth for the entire fiscal year, indicating a resilient and thriving economy.
Optimistic Growth Forecasts
IMF has revised India’s growth forecast for FY 24 to 6.7%, up from the initial projection of 6.3%, showcasing confidence in India’s economic trajectory. In contrast, advanced economies are expected to see a more modest growth range, emphasizing India’s standout performance.
Inflation Control and Economic Stability
A decline in inflation, with December 2023’s retail inflation at 5.7%, adds to India’s economic stability. The stock market’s ascent to becoming the world’s 4th largest equity market underscores the robustness of India’s economic fundamentals.
Human Development and Poverty Reduction
India’s economic prowess is complemented by strides in human development, as reflected in Niti Aayog’s report highlighting a significant reduction in Multidimensional Poverty and Poverty Headcount Ratio.
High-Frequency Indicators
Recent high-frequency indicators showcase the resilience of India’s domestic economy, with UPI transactions reaching a record Rs 18.23 trillion and manufacturing PMI remaining expansionary for 30 consecutive months.
Banking Sector Milestones
Public Sector Banks have reported record profits exceeding Rs. 1 lakh crore, marking a decadal low in Gross and Net NPAs. SBI, once troubled, emerged as India’s ‘Most Profitable’ company, reporting substantial profits in the latest quarterly results. The banking sector’s robust performance contributes to the ‘Garib Kalyan’ initiative, showcasing a positive outlook for India’s economic landscape.