GROUP ASSIGNMENT

OUTLOOK FOR
INDIAN
ECONOMY
MEMBERS:
ROHIT GOILKAR 18
MAHESH KOTKAR 31
ADITYA MASKE 36
SHREYAS GOSAVI 58
INTRODUCTION
The Indian economy is the fifth-largest
economy in the world by nominal GDP and the
third-largest by purchasing power parity (PPP).
It is a rapidly growing economy, with an average
GDP growth rate of 7% over the past decade.
ECONOMIC PARAMETERS
GDP

India's GDP growth rate has been volatile in recent

years, ranging from 3.7% in 2019-20 to 8.7% in 2021-
22. The World Bank projects India's GDP to grow by
6.7% in 2023-24
Inflation

India's retail inflation rate has been rising in

recent months, due to factors such as higher
food and fuel prices. The Reserve Bank of
India (RBI) has raised interest rates in an effort
to control inflation. The RBI projects India's
retail inflation rate to be 6.7% in 2023-24
CRR

The CRR is the percentage of deposits that

banks must keep with the RBI. The RBI has
been gradually reducing the CRR in recent
years to boost liquidity in the banking system.
The current CRR is 4%.
SLR

The SLR is the percentage of deposits that

banks must invest in government securities.
The RBI has been gradually reducing the SLR
in recent years to give banks more flexibility in
lending. The current SLR is 18%
Sensex

The Sensex is a stock market index that tracks

the performance of the 30 most valuable
companies listed on the Bombay Stock
Exchange. The Sensex has been rising steadily
in recent months, reaching a record high in
August 2023.
Forex Reserves
India's foreign exchange reserves stood at
$630 billion as of August 2023. This is
equivalent to over 13 months of imports. .

Exports

India's exports grew by 17% in 2022-23. The

main export items include engineering goods,
textiles, and pharmaceuticals
Imports
IIndia's imports grew by 22% in 2022-23. The
main import items include crude oil,
electronic goods, and machinery

Interest Rates

The RBI has raised interest rates by 150 basis

points in 2023 in an effort to control inflation.
The current repo rate is 5.75%.
Contribution of primary/ secondary/
tertiary sectors in GDP
The primary sector (agriculture, forestry, and
fishing) contributes about 15% to India's GDP.
The secondary sector (manufacturing and
construction) contributes about 25% to GDP.
The tertiary sector (services) contributes about
60% to GDP
OUTLOOK
The outlook for the Indian economy is positive. The economy is
expected to grow at a healthy rate in the coming years, driven
by strong domestic demand and exports. However, there are
some challenges that the economy faces, such as high inflation
and rising interest rates
RECOMMENDATIONS
The government and the RBI can take a number of steps to
boost the growth of the Indian economy, such as:
● Investing in infrastructure
● Promoting manufacturing
● Simplifying the regulatory environment
● Reducing inflation
● Controlling fiscal deficit
CONCLUSION
The Indian economy is a rapidly growing economy with a lot of
potential. The government and the RBI need to take steps to
address the challenges that the economy faces and to boost
growth.