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Expressing optimism over the India’s economic growth, newly elected President of Confederation of Indian Industry (CII) R Dinesh has said that with support of strong domestic drivers and robust capex momentum of the government, the country’s economy is likely to grow in the range of 6.5-6.7 per cent in the current financial year 2023-24 (FY24). Besides, India’s Gross Domestic Product (GDP) grew by 6.1 per cent in the March quarter of 2022-23, pushing the annual growth rate to 7.2 per cent. The growth has propelled the country’s economy to $3.3 trillion, setting the stage for achieving the $5 trillion target in the next few years. 

He said India’s GDP growth is expected to leapfrog to 7.8 per cent in the next decade (FY22-31) from 6.6 per cent previously recorded. He also said ‘the government’s structural reform agenda has enabled the country to become the highest growing economy in the current scenario, and we believe this can be sustained going forward’. He further said ‘This year is very important in view of India assuming the G20 Presidency. The entire world is looking at India. In the last year, there has been a significant focus on India and the opportunities that arise from this are important for us’.

CII President also expects the consumer price index (CPI) based retail inflation to fall within RBI’s target range in 2023-24. He stressed that given the fast moderation in inflation, the RBI should continue with a pause in the short-term lending rate (repo rate) and also change its stance to neutral. The retail inflation declined to an 18-month low of 4.7 per cent in April and the data for May is scheduled to be released later this month. CII also suggested a host of reforms which the government should undertake to boost India’s growth potential.