The National Council of Applied Economic Research (NCAER) has suggested that India’s economy could grow faster than 7% in the current financial year. Factors such as the projected acceleration in global growth and trade volumes, as well as an expected above-normal monsoon, are seen as positive indicators for India’s economic growth. The International Monetary Fund (IMF) has also raised India’s growth forecast for 2024-25 to 6.8%, up from the earlier projection of 6.5%. Government data shows that the economy grew by 7.6% in FY24.

“Projected acceleration in both global growth and trade volumes, as well as the forecast of an above-normal monsoon, indicate that the Indian economy can again attain growth rates higher than 7% during the current fiscal year,” said NCAER director general Poonam Gupta.

The International Monetary Fund, earlier this month, raised India’s 2024-25 growth forecast to 6.8% from 6.5% projected earlier.

According to government data, the economy grew 7.6% in FY24.

The NCAER’s April review found that the economy carried forward the momentum seen in February and March. “A range of high-frequency indicators reveal the resilience…with Purchasing Managers’ Index (PMI) for manufacturing at a 16-year high and UPI (Unified Payments Interface) touching highest volume since its inception in 2016.”