Budget 2024: 7% plus growth to be new normal for India

India’s credit flow in the first nine months (April-December) of the ongoing fiscal year 2023 was at Rs 22.8 trillion, up 1.6 times from Rs 14.1 trillion during the same period previous fiscal 2022.

The credit flow numbers for the last nine months of the fiscal year 2023-24 were shared by BJP leader Amit Malviya ahead of the tabling of Budget 2024 in Parliament by Finance Minister Nirmala Sitharaman on Thursday.

Credit growth across sectors

As per details shared by Malviya, credit flow in agriculture and allied sector in April-December 2023 rose by 1.5 times to Rs 2664 billion from 1724 billion during same period over the previous fiscal.

Credit flow in infrastructure sector rose a whopping 6.2 times to Rs 771 billion in first nine months of fiscal year 2023, compared to Rs 125 billion during same period in the previous fiscal year.

In services sector, credit flow increased to Rs 7064 billion, or 1.4 times, in April-December FY 2023, from Rs 4958 billion during the same time in the previous fiscal.

The figures shared were from the Reserve Bank of India (RBI) and State Bank of India (SBI) Research.

“With such credit flow numbers, 7 per cent plus growth looks like the new normal in FY2024 and beyond,” the BJP leader said.

Before the FM presents the vote on account, here is a quick look at the credit flow numbers for the last 9 months (Apr—Dec2023).

At ₹22.8 Tn, in the first 9 months of this fiscal year, credit flow is a 1.6x, compared to ₹14.1 Tn for the same period, previous fiscal. Credit… pic.twitter.com/uMiunONDhE

— Amit Malviya (@amitmalviya) February 1, 2024

‘India emerged as star performer’

The International Monetary Fund, or IMF, has recently said: “India has emerged as a star performer” and is projected to contribute more than 16 per cent of the global growth, due to economic reforms in key sectors like digitisation and infrastructure.

The country’s real GDP clocked a growth of 7.7 per cent in the H1 2023-24 (April-Sept 2023), which is highest amongst the major economies.

India’s National Statistical Office is projecting India’s real GDP growth in 2023-24 as 7.3 per cent.

The IMF has raised its growth forecast for India’s economy in FY 24 to 6.7 per cent, an increase from the earlier projection of 6.3 per cent.

With inputs from agencies

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