Indian economy to grow at 6.7% between fiscals 2024 to 2031: CRISIL

“The Indian economy is expected to grow at an average rate of 6.7% per annum until the end of the decade,” CRISIL said in its latest report. The economy will grow at this rate between the financial years 2024 to 2031, a notch above the pre-pandemic average of 6.6%. According to CRISIL, the key contributor to this trend will be capital.

“The Indian economy is expected to grow at an average rate of 6.7% per annum until the end of the decade,” CRISIL said in its latest report.

The economy will grow at this rate between the financial years 2024 to 2031, a notch above the pre-pandemic average of 6.6%. According to CRISIL, the key contributor to this trend will be capital.

“This is a result of the investment-driven strategy of the government when the private sector was shy of making investments.”

“The government increased capital expenditure significantly to support building expenditure and providing interest-free loans to states to bolster their own investment efforts,” the report said.

CRISIL said that after a robust 7.3% growth this fiscal, there will be moderation to 6.4% in the next financial year.

“There is also a need to monitor the impact of the escalation of the Middle East conflict on energy and logistics costs,” it said. “In India, the inflation level of 5.7% in December 2023 was driven solely by volatile vegetable prices and food-grain inflation,” according to the report.