Over 7% growth is the new normal for India in FY 2024 and beyond

The Indian economy is likely to grow at 7.4% in the coming years. As Union Finance Minister Nirmala Sitharaman is to present the Interim Budget - vote on account - today, here is a quick look at the credit flow numbers for the last nine months, from April to December 2023.

At $22.8 trillion, in the first 9 months of the current fiscal year, credit flow is 1.6x, compared to $14.1 trillion for the same period, in the previous fiscal. According to the data released by PMO, credit flow growth across sectors, such as agriculture (1.5x), MSME (1.7x), infra (6.2x), and services (1.4x), over the previous period, is outstanding. The data shows that the rural credit is booming, which discredits the talks of a rural distress.

With such credit flow numbers, a growth rate of over 7% seems to be the new normal in the 2024 fiscal and beyond.