India’s economy to grow by more than 6.5% in 2024

India’s government said in its monthly economic report that the economy will maintain growth momentum on a quarterly basis after beating expectations in the July–September period and that inflation is falling despite temporary food price shocks.

India’s economy grew faster than expected in the July–September period, raising expectations that Asia’s third-largest economy will outperform its full-year estimates.

“The risks to the growth and stability outlook mainly emanate from outside the country; however, the Indian economy is easily expected to achieve a growth rate of more than 6.5% in fiscal year 2024,” the government said in its report.

“The momentum in the second quarter of fiscal 2024 is likely to continue through the third quarter as well,” the report added.

Retail price inflation rose in November at the fastest pace in three months due to higher food prices, but core inflation, which excludes volatile food and energy prices, was the lowest in nearly four years at 4.1%.

The Indian government also said consumer demand was expected to continue to grow, while demand in rural areas was improving.