FICCI Chief Forecasts Robust Growth for Indian Economy in FY24

Anish Shah, the freshly appointed president of the Federation of Indian Chambers of Commerce and Industry (FICCI) and CEO of Mahindra Group, brings a positive outlook to India's economic landscape. Forecasting a growth rate of 7.5-8% for the current fiscal year (FY24), Shah attributes this optimism to the robust growth momentum and an uptick in investments.

In a recent interview, Shah emphasized the impressive performance in Q2 FY24, characterizing it as "great." He anticipates that this momentum will persist, projecting a growth rate between 7.5% to 8% for the ongoing fiscal year. Looking ahead to FY25, Shah envisions an even more robust growth at 8%, underlining the resilience and potential of the Indian economy.

Having assumed the presidency on December 9, 2023, Shah is not only a key figure in FICCI but also the Group CEO of Mahindra Group and the Managing Director of M&M. His rich background, including leadership roles at GE Capital India, positions him as a seasoned expert in navigating economic landscapes.

The optimism surrounding India's economic trajectory aligns with recent developments and projections from various financial institutions. Following the stronger-than-expected growth of 7.6% in Q2 FY24, the Reserve Bank of India's Monetary Policy Committee (MPC) increased the GDP growth estimate for the full fiscal year. The RBI's projection for FY24 now stands at 7%, up from the earlier estimate of 6.5%.

SBI Research, the research wing of the State Bank of India, also presents an optimistic view, forecasting a growth rate of 7.6% in Q2 FY24. The buoyant growth in manufacturing (13.9%) and construction (13.3%) contributed significantly to this positive outlook. However, some institutions, like ICRA and Morgan Stanley, anticipate a slight moderation in GDP growth in H2 FY24.

Despite minor variations in forecasts, the consensus among financial experts points towards a notable economic recovery. Goldman Sachs revised its calendar year growth forecast by 20 basis points to 6.7%, while Citi suggested a potential 50 basis points higher growth than their initial forecast, reaching 6.7% on-year.

As India navigates through economic uncertainties, the optimistic projections by FICCI Chief Anish Shah and other financial institutions provide a glimpse of confidence in the nation's economic resilience. The ongoing fiscal policies, coupled with positive momentum, contribute to a favorable economic outlook as India progresses further into FY24.