Top highlights: Economic Indicators

1. GDP grew by 8.2 percent in FY24. The economy is expected to grow 6.5–7 percent in FY25.*
2. The fiscal deficit is expected to decline to 4.9 percent of GDP in FY25, down from the previous estimate of 5.1 percent. The aim is to reach a fiscal deficit of below 4.5 percent by FY26.
3. CPI inflation moderated to 5.4 percent in FY24 from 6.7 percent in FY23. It could moderate to 4.5 percent in FY25 and 4.1 percent in FY26.
4. The RBI has kept policy rates unchanged at 6.5 percent since February 2023.
5. A 2.3 percent decline in merchandise exports was partly offset by 4.8 percent in services exports in FY24. The current account deficit narrowed to 0.7 as a percent of GDP.
6. Gross FDI inflows were US$70.9 billion in FY24, down by US$0.5 from FY23. However, FDI inflows in the infrastructure and power sectors doubled in FY24.
7. India received 122 AI-related FDI projects in 2022, making it a top destination for AI-related FDI.
8. Forex reserves hit a record high of US$652.0 billion in June 2024, equivalent to 11 months of import cover, reaching US$645.6 billion in FY24.
9. India's stock market capitalisation to GDP ratio ranked fifth globally, and the NSE's investor base tripled to 92 million in four years.
   
10. INR was the least volatile currency among its emerging market peers and depreciated by 3 percent in FY24 at INR/US$83.4. Due to a narrow current account deficit and strong FPIs, INR remained unchanged in Q1 FY25.
11. Industrial growth accelerated by 9.5 percent in FY24, with the manufacturing and construction sectors leading the way.

*Growth is measured on a year-over-year basis on fundamental values. The predicted numbers are per the Economic Survey released on 22 July 2024.