India’s economy pegged to grow at 7.3% this year

The Indian economy is expected to grow at a rate of 7.3% in the fiscal year 2023-24, surpassing earlier forecasts by the IMF, RBI, and research firms. The growth is driven by government investment and spending, making India the world’s fastest-growing major economy. However, concerns remain about the low private consumption growth and the tepid nominal GDP growth, which could impact tax collections and fiscal deficit. The sector-wise breakdown shows an increase in manufacturing, while agriculture and trade sectors have seen a decline in economic momentum.