India’s economy is expected to grow by six per cent in FY24, according to credit rating agency Acuite Ratings and Research. Despite global instability, the Indian economy has shown strength and stability, with most lead indicators displaying resilience. However, Acuite predicts that GDP growth will moderate in FY24. Domestic demand remains strong, but there has been a reduction in merchandise exports due to slowing external demand and moderation in commodity prices. Acuite identifies challenges to domestic growth in FY24, including a slowdown in global growth and tighter credit conditions, climate risks such as a warmer summer and El Nino, uneven and sluggish private capex, and downside in urban leveraged consumption due to higher borrowing costs.
