Growth Rate:
The country’s economy grew 7.8 per cent in the first quarter but it will be difficult to sustain that growth over the next three quarters. A report released on Friday by several leading economic agencies suggested that most parts of the country may feel the effects of an abnormal monsoon. According to Moody’s, India’s economy can remain at 6.1 percent.
The country’s economic growth rate in the first quarter was 7.8 percent, but it will be difficult to maintain this growth rate in the next three quarters. The report released by many well-known economic agencies on Friday shows that the effect of abnormal monsoon may be visible in most parts of the country.
Growth rate can be 6.5 percent
The growth rate for the year 2023-24 can be 6 percent to 6.5 percent. Major rating agency Moody’s has reduced the annual growth forecast for the current financial year from 6.5 percent to 6.1 percent. It has also talked about rising inflation due to less than normal rainfall. Last month, while reviewing the monetary policy, RBI also gave some similar indications.
What was the possibility expressed by RBI?
RBI has said it will reduce to 8 percent in the first quarter, 6.5 percent in the second quarter, 6 percent in the third quarter and 5.7 percent in the last quarter of January-March. CRISIL’s research report said that domestic demand had shown signs of improvement in the first quarter but below normal monsoon has become the biggest threat to it. It can bring down economic growth. Besides, the effect of 2.50 percent increase in interest rates last year will also be visible. A positive signal is coming from the increase in government expenditure.
According to Crisil, the growth rate is expected to be 6 percent.
Despite this, Crisil has estimated the economic growth rate to be only 6 percent during the current financial year. SBI’s Ecowrap report has also expressed concern about the effect of El Nino. According to this, 33 percent less rainfall than normal in the month of August is a cause of more concern, the effect of which will be visible in the coming days. Due to this, the rate of inflation can increase by up to 3.2 percent.
