Industry leaders expect GDP to grow at 6.5% in FY24: Survey

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IANS | 13 Jan, 2023
About 60 per cent of the business leaders surveyed were of the view that Indian gross domestic product (GDP) will grow at 6.5 per cent during 2023-24, said Deloitte Touche Tohmatsu India LLP (DTTILLP).

In a pre-budget survey by DTTILLP, industry leaders said amongst the industry sectors, chemicals, capital goods and energy would log high growth.

They also said government initiatives, such as Atmanirbhar Bharat, production linked incentive (PLI), and favourable monetary policies by the Reserve Bank of India (RBI - to moderate retail inflation and maintain significant forex), increased spending on infrastructure, and research and innovation, will further this momentum.

According to the survey, the pace of capital expenditure, infrastructure development and the need to boost infrastructure financing through private partnership are important for economic growth.

Sixty per cent of respondents suggested raising funds through Indian Government Bonds, DTTILLP said.

Fifty-eight per cent respondents suggest that public-private partnership (PPP) should be encouraged to meet the funding gap and address issues that deter private participation, while bringing in innovative structures such as credit guarantee enhancement.

As global uncertainties and an economic slowdown loom across geographies, tax-related changes are expected to boost industry growth and are the most sought-after measures from the upcoming Union Budget, DTTILLP said.

An overwhelming majority of respondents see trade treaties as vehicles for increasing investment flows and providing exchange of emerging technologies to strengthen their role in global value chains (GVCs).

"Despite global uncertainties, the Indian economy has been resilient and is well on its way to a growth rate of 7 per cent. With the vision of attaining a $5 trillion economy, the government has adopted a focussed approach towards ease of doing business and enhancing industrial growth, generating employment, and increasing investments. Union Budget 2023-24 holds great expectations from the industry to continue this momentum and lead the country towards economic prosperity," Sanjay Kumar, Partner, DTTILLP said.