Union Commerce and Industry Minister Piyush Goyal, speaking at the Times Network India Economic Conclave, expressed confidence that India’s economic growth will be back on track by the end of the fiscal year, despite recent challenges.
Current Economic Scenario
India’s GDP growth slowed to a seven-quarter low of 5.4% during the July-September period, prompting the Reserve Bank of India (RBI) and other agencies to revise full-year growth projections downward. However, the government remains optimistic about achieving a 6.5% growth rate for the fiscal year.
Factors Behind the Slowdown
Goyal attributed the temporary slowdown to the lag effects of elections, explaining that during polling periods, policy decisions and infrastructure spending typically slow down. This, he said, caused a dip in economic momentum during the first quarter.
Signs of Recovery
The Minister highlighted several positive indicators suggesting a rebound:
1. Festive Spending: Increased consumer activity during the festive season.
2. Rural Growth: Signs of revival in rural demand and consumption.
3. Banking Sector Traction: Renewed momentum in banking activity and lending.
4. Infrastructure Spending: A resurgence in infrastructure development projects
Outlook for the Year
With these factors gaining momentum in the third quarter (October-December), Goyal is optimistic that by March 2024, India’s economic trajectory will realign with its growth targets.
This recovery will play a crucial role in reinforcing investor confidence and maintaining India’s position as one of the fastest-growing major economies in the world
