IndiGlobal Bureau
Globally, the world needs India to become a reliable challenger to China’s supply- chain dominance. That is the great opportunity of 2024. That is what will fuel the liftoff. Investment is going to flow into India in unprecedented volumes, said Anand Mahindra, chairman, Mahindra group. That in a way sums up the mood leading up to the year ahead. From big wigs in the industry, to the Prime Minister Narendra Modi stating that India is brimming with self-reliance and self-confidence.
The numbers too augur well for the Indian economy in the last quarter of 2023, a total of Rs 2.1 trillion worth of new projects were announced and what is heartening is almost 656% of the value or new project announcements came from manufacturing.
The Indian economy is set to grow at 7 percent in FY24 and at 6.5 percent in FY25. All the sectors of the economy are poised to grow with the financial sector and monetary policy supporting growth. According to Kembai Srinivasa Rao who teaches at IIRM, 2024 should show a better uptick in growth sentiments with a fine balance between inflation and growth.
In spite of the Russia-Ukraine war, the flashpoint in the Middle-East and the minor irritant by way of the new regime in the Maldives shedding ‘India-First’ policy that the tiny nation of islands stood for throughout its history, India has managed to balance the geo-political changes in a fractitious world while the stock market rose like never before ending the year at a record high. The economy shone with Rs 1,6 lakh crore becoming the new normal for monthly GST collections and the GDP hitting 7.7% between April and September.
Goldman Sachs, the US-based investment bank, has predicted a pick-up in growth in the first half of next year, driven by a consumption spending push in the run-up to the elections — and a possible rekindling of investment growth in the second half, with private investment finally kicking in. The government I keen to usher investment in industry, logistics and infrastructure.
The overall economy looks pink in health as big corporates are showing good balance sheets and there is adequate forex cushion against external shocks. Managing food inflation and rural output are concerns for the government in an election year. Unless there is a black swan event, India looks to grow.