India’s real growth at 8.2% and nominal growth at 9.6 % in FY24

Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, presented the Union Budget 2024-25 in Parliament. The Macro-Economic Framework Statement highlights the resilience of the Indian economy in an uncertain global landscape. The Government aims to reduce the fiscal deficit to below 4.5% of GDP by FY26, focusing on inclusive economic growth. India’s real growth is at 8.2% and nominal growth at 9.6% in FY24, with private consumption up by 4.0%. The Reserve Bank of India projects 7.2% growth for FY25, supported by strong corporate and bank balance sheets and capital expenditure. Average retail inflation eased to 5.4% in 2023-24 from 6.7% in FY23. The fiscal deficit for 2024-25 is estimated at 4.9% of GDP, with capital expenditure at US$ 132.81 billion (Rs. 11,11,111 crore) (3.4% of GDP), including US$ 17.93 billion (Rs. 1,50,000 crore) for state financial assistance.

The fiscal deficit declined to 5.6% of GDP in FY24, while the revenue deficit fell to 2.6%. Key fiscal indicators for FY25 include a fiscal deficit of 4.9%, a revenue deficit of 1.8%, and Central Government debt at 56.8%. Gross market borrowings are estimated at US$ 167.46 billion (Rs. 14.01 lakh crore), and net market borrowings at US$ 139.02 billion (Rs. 11.63 lakh crore) for 2024-25. The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks was reduced to 2.8% in March 2024. Gross Tax Revenue (GTR) is projected to grow by 11.7% over RE 2023-24 to US$ 459 billion (Rs. 38.40 lakh crore) (11.8% of GDP). GST receipts are estimated at US$ 126.94 billion (Rs. 10.62 lakh crore) for 2024-25, growing by 11.0% over FY24. The total expenditure of the Union Government grew by 5.9% in FY24, reflecting robust tax collection growth and continued buoyancy in revenue receipts.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.