Economy shows resilience despite external headwinds
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India's economy has exhibited resilience and has been able to grow at a rate much higher than market expectations. In the first three quarters of FY24, the country's GDP expanded sharply by 8.2%, with the growth in Q3 coming in at a six-quarter high of 8.4%. The growth was largely driven by investments, particularly in manufacturing and residential construction. Key macro-indicators such as CPI inflation, WPI inflation, trade, and current account deficit are benign and expected to remain range-bound. Inflationary pressures have remained contained, with CPI inflation averaging 5.4% in April-February FY24. The share of gross-fixed capital formation (GFCF) in GDP is expected to rise to 34.1% in FY24, the highest in the past 11 years. However, concerns remain about the durability of the growth revival and the quality of the data. Economists expect consumption to pick up in FY25 from easing inflation, rate reductions, improvement in sentiments, and growth in real wages. Most economists expect FY25 GDP growth to be around 7% or slightly higher.

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https://www.financialexpress.com/policy/economy-economy-shows-resilience-despite-external-headwinds-3442232/