India's growth upgraded: India's economy is painting a promising picture for the fiscal year 2024, with global agencies revising growth projections upward. The National Statistics Office's estimate of a 7.3 per cent real GDP growth sets the stage for three consecutive years of robust economic performance, a testament to the resilience boosted by past decade reforms and lessons learned during the pandemic.

The RBI's Survey of Professional Forecasters (SPF) is aligning with the positive trend, upgrading India's real GDP growth from 6.4 per cent to 7.0 per cent. The International Monetary Fund (IMF) is also on board, revising growth projections to 6.7 per cent.

At the heart of this economic buoyancy is the private consumption, initially fuelled by the release of pent-up demand post-pandemic and now propelled by optimistic consumer sentiment amid reduced economic uncertainties. Robust Private Final Consumption Expenditure (PFCE), driven by both urban and rural demands, is steering India's growth trajectory in FY24.

Urban Indicators

Urban demand indicators are on the rise, with increased sales of passenger vehicles, higher credit and debit card expenditures, and a domestic air passenger traffic exceeding pre-pandemic levels. The housing sector is also witnessing an upswing. Meanwhile, signs of a revival in rural demand are evident through growing sales of tractors, two-wheelers, and a surge in the volume growth of fast-moving consumer goods (FMCG). Nielsen IQ's data reveals a substantial 5.8 per cent YoY increase in FMCG volume sales in rural markets during Q3 of FY24.

Anticipated factors like rising minimum support prices and a promising rabi harvest are expected to further fortify rural demand, adding momentum to economic growth in the coming fiscal year. With IMF projections placing India as the third-largest economy by 2027, these positive economic indicate the nation's resilience and potential in the post-pandemic business landscape.