CRISIL’s Bold Prediction: India’s Economy Set to Skyrocket at 6.7% Speed – Unstoppable Growth Until 2031!

CRISIL’s Bold Prediction: Credit rating agency CRISIL has expressed full confidence in India’s economy. A recent report by CRISIL has estimated that India’s GDP will continue to grow at a rate of 6.7 percent from 2024 to 2031. CRISIL has said that the pace of the Indian economy will remain balanced in the coming years. The economy will keep pace due to the capital support from the government. 

GDP will be 6.4 percent in the next financial year 

CRISIL estimated in its report that the growth rate of Indian GDP in the next financial year could be 6.4 percent. According to CRISIL’s Economic Outlook, India’s GDP is moving from stability to growth. At present there is no possibility of any adverse impact on this till 2031. This estimate is going to surpass the 6.6 percent economic growth rate before Covid-19. 

GDP increasing due to government efforts 

According to CRISIL, the economic policies of the government are ensuring the growth of GDP. Besides, the private sector is also getting full support in this. The government has promoted capital expenditure. Besides, investment efforts are also being promoted by giving interest free loans to the states. 

Bad effect of ongoing conflicts in the Middle East 

Despite the economic growth rate of 7.3 percent in the current financial year, CRISIL has estimated the GDP to be 6.4 percent in the next financial year. There is every possibility that the ongoing conflicts in the Middle East will have a negative impact on energy and logistics costs.

These need to be given special attention. This is likely to have a negative impact on the energy sector. Apart from this, import and export may become expensive due to increase in shipping cost. This will have a bad impact on the economy.

Attention should be paid to inflation rate 

The inflation rate in India in December 2023 was 5.7 percent. The prices of vegetables and food grains have increased rapidly in the country. This inflation coming in food items is a thing worth noting. The Reserve Bank of India (RBI) has set a target of keeping the inflation rate at 4 percent. But, if the prices of food items are not controlled then it may be very difficult to achieve this target.

However, CRISIL expressed hope that despite these challenges, inflation and prices of petrol and diesel may come down. But, the impact of changes in interest rates by the US Federal Reserve may be visible. 

CRISIL was formed in 1987 

Credit Rating Information Services of India (CRISIL) is a SEBI registered credit rating agency. This is India’s first rating agency. It was built in 1987.