The Indian economy is set for a robust growth trajectory, driven by healthy increases in exports, improvements in the current account deficit, and a sharp focus on expanding manufacturing capabilities. Commerce and Industry Minister Piyush Goyal recently expressed optimism about the country’s economic prospects during a gems and jewellery industry event in Mumbai.
Goyal predicted that the country’s goods and services exports are likely to surpass $800 billion in the current fiscal year, building on the previous year’s $778 billion and $776 billion figures in 2023-24 and 2022-23 respectively. The minister highlighted the positive sentiment among industry and exporters, with a strong sense of confidence in India’s growth story.
Emphasizing the importance of expanding manufacturing capacities to reduce import dependencies, Goyal also noted the encouraging improvement in the current account deficit in recent months, signaling a positive outlook for the Indian economy.
Various rating agencies have put forth growth forecasts for India’s GDP, with S&P Global Ratings maintaining a 6.8% growth forecast for the current financial year. Fitch estimates growth at 7.2%, while the Asian Development Bank predicts a 7% GDP growth. Moody’s Ratings, Deloitte India, and Morgan Stanley offer varying growth rate predictions for the coming year.
When asked about potential amendments to special economic zones (SEZs), Goyal mentioned that several suggestions are being considered by the ministry. Notably, India recorded a current account surplus in the March quarter, a significant shift from previous deficits.
Despite a widening trade deficit in May, India’s merchandise exports saw a positive growth of 9.1% at $38.13 billion. These developments indicate a promising outlook for the Indian economy, with a focus on sustainable and inclusive growth.
