India’s GDP growth is expected to reach approximately 8% in FY24, up from 6.6% in FY23, mostly due to robust domestic consumption and capital investment.
In the current fiscal year, the National Statistical Office (NSO) has forecasted 8.4% growth in the December quarter. Additionally, it updated its GDP projections for the first and second quarters, which were previously projected to be 7.8% and 7.6%, respectively, to 8.2% and 8.1%.
India’s economy is predicted to develop at the highest rate among the major G20 nations; real GDP growth is predicted to increase from 7% in the fiscal year 2022–2023 to approximately 8% in the fiscal year ending in March 2024 (fiscal 2023–24).
India’s economic growth will be supported by high domestic consumption and government capital investment. Furthermore, as businesses diversify away from China, India stands to gain from expanded international trade and investment prospects.
As the operational climate improves, non-performing assets (NPAs) in the banking industry will continue to decline. Because of India’s robust economic growth, slippage ratios, or the ratio of newly accredited non-performing loans to total standard assets over a given period, would remain low.
Over the last five years, the banking industry has been significantly more profitable, mostly due to reductions in loan-loss provisions combined with enhancements in asset quality.