According to CRISIL, capital will mainly contribute to this trend.
CRISIL said that by the end of the current decade, the average annual growth rate of the Indian economy is expected to be 6.7 percent. A recent report of the rating agency has said that the economy will grow at this rate between the financial year 2023-24 to 2030-31. This rate is slightly higher than the average growth rate before the pandemic of 6.6 percent.
According to CRISIL, capital will mainly contribute to this trend. The report said the government has significantly increased capital expenditure to support construction activities and is offering interest-free loans to boost states' investment efforts.
Crisil said that after a strong growth of 7.3 percent in the current financial year, it is expected to be 6.4 percent in the next financial year. According to the report, RBI will remain cautious on the interest rate front, because its eye will be on bringing inflation to the level of four percent.
Published – February 4, 2024, 02:27 IST
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