Indian economy to grow at 6.3% in 2023-24: FICCI survey

India’s economic growth is estimated to slow to 6.3% in the current financial year from 7.2% recorded in the previous year, dragged by a sharp deceleration in farm sector growth, FICCI Economic Outlook Survey released on Monday showed.

Agriculture sector growth is likely to slip to 2.7% in 2023-24 from 4% recorded in the previous year. “The El Nino effect has had an impact on the spatial distribution of rainfall this monsoon season,” the industry body noted in the report.

Industry and services sectors are anticipated to grow by 5.6% and 7.3%, respectively in the current financial year.

“Persisting headwinds on account of geopolitical stress, slowing growth in China, lagged impact of monetary tightening and below normal monsoons pose downside risks to growth,” the report noted.

According to the survey results, median GDP growth is estimated to slow down to 6.1% and 6% in Q2 and Q3, respectively – after posting a four-quarter high growth of 7.8% in Q1 of 2023-24.  

The survey was conducted in the month of September 2023. It is based on responses from leading economists representing the industry, banking and financial services sector.

On price rise, the survey participants opined that the course of inflation remains uncertain. The Consumer Price Index (CPI) based inflation rate may have peaked, but upside risks to prices remain on fore, it said.