Farm sector output is likely to grow at 3.7% in FY25, up from 1.4% in FY24
Confederation of Indian Industry (CII) expects the country’s economy to grow at 8 percent in 2024-25 on the back of a better performance of the agriculture sector and higher levels of private investment, according to Sanjiv Puri, the newly elected President of the apex industry body.
CII’s projection comes after RBI upgraded its estimate for India’s GDP growth to 7.2 percent last week.
According to CII’s forecast, farm sector output is likely to grow at 3.7 percent in FY25, up from 1.4 percent in FY24. It also expects the industry to grow at 8.4 percent against 9.3 percent in the year before, and services at 9 percent compared to 7.9 percent in the year ended March.
The farm sector which was hit by erratic weather in the last financial year is expected to perform better with the forecast of normal monsoon this year which will lead to higher rural consumption driving growth, Puri, who is also ITC chairman, observed.
“The growth estimate hinges critically on addressing the unfinished reform agenda on priority, in addition to improvement in world trade prospects aiding our exports, twin engines of investment and consumption doing well, and expectations of a normal monsoon, among other factors,” Puri was quoted as saying in a CII statement.
“The stellar growth performance, expected during the current fiscal, is propelled by six growth drivers which have pivoted the economy to an accelerator mode,” a statement from CII said citing Puri.
The participation of private sector investment in the India growth story, public investment in physical and digital infrastructure, well-capitalized banking system, booming capital market, and reduced dependence on oil are igniting the India growth story, Puri said.
According to CII’s January-March 2024 business confidence survey, three-fourths of the over 200 respondents anticipated an improvement in private capital expenditure in the first half of the current fiscal, compared to the same period a year ago.
Gross fixed capital formation, or investments in plant and machinery, by the private sector, stood at 23.8 percent of nominal Gross Domestic Product (GDP) in FY23, higher than the level seen in the pre-pandemic years of FY19 and FY20.
Infrastructure-linked sectors like cement and steel, sectors such as electronic production, food processing, and telecom that are benefiting from the government’s production-linked incentives, logistics, renewable energy, automobiles, and semi-conductors are witnessing an improvement in private investment levels, Puri added.
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all the forecasts are good. what about personal taxation of salaried and Sr. person’s. they have to look at this throughly. property taxation also should be reviewed. Govt is squeezing middle class for providing freebies for all. freebies should be for people who follow certain rules not for all. education and health care expenses to come down. Bhartians are careful spenders. you have to attract them with wonderful future for spending.