CII expects India’s GDP at 8%; says Inflation to remain closer to RBI’s 4% target this year

Sanjiv Puri, President of CII, shared his optimism about India's economic trajectory, highlighting that the previous year had surpassed all expectations.

New Delhi: The Confederation of Indian Industry (CII) on Thursday said that it anticipates India’s Gross Domestic Product to grow by 8 per cent in 2024.

Sanjiv Puri, President of CII, shared his optimism about India’s economic trajectory, highlighting that the previous year had surpassed all expectations. “We have had a great year and every estimate for the last year has been beaten, but we believe the best is yet to come. We are optimistic about the reports and estimates that have come out within and outside India,” said Puri at an event organised by the industry body here on Thursday.

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The event also focused on the country’s Economic Growth Outlook and the key reform priorities for the country including the industry expectations from the upcoming Union Budget, expected next month. Puri emphasized that policy interventions, particularly those aimed at improving the Ease of Doing Business (EODB), have significantly strengthened the Indian economy. These reforms have created a more favourable business environment, enabling industries to thrive and contribute more effectively to economic growth.

He pointed out that various indicators of economic health are robust and that certain sectors are poised for further improvement. These include agriculture, information technology, services, and global trade, which are expected to drive economic expansion in the coming years. CII’s positive outlook for the current fiscal year is based on several key factors. The organization expects the Indian economy to grow at a robust rate of 8 per cent, driven by strong performance across multiple sectors. CII highlighted that the policy measures implemented by the government, aimed at simplifying business processes and reducing bureaucratic hurdles, have been instrumental in fostering a conducive environment for growth. These measures are particularly beneficial for small and medium-sized enterprises, which form the backbone of the Indian economy.

Additionally, CII expressed confidence in the government’s ability to manage inflation. CII noted that inflation is expected to remain close to the target range of 4 to 4.5 per cent in 2024.

This projection is based on various economic indicators and the government’s proactive measures to control price rises. Keeping inflation in check is crucial for maintaining purchasing power and ensuring sustainable economic growth.

The positive outlook for India’s economy is also supported by improvements in global trade dynamics and the resilience of the IT and services sectors. CII also added that the agricultural sector is expected to benefit from favourable monsoon conditions and government initiatives aimed at enhancing productivity and income for farmers. These factors collectively contribute to a more optimistic economic forecast for India.