Growth adjustments

Weak consumption demand is a risk

The first advance estimates (FAE) of national income for this financial year (2023-24), released last week by the National Statistical Office (NSO), surprised most economists on the upside. This was despite most projections already being adjusted for the higher than expected growth outcomes in the first two quarters of the financial year. According to the NSO estimates, the Indian economy is expected to grow 7.3 per cent in real terms in 2023-24, as against 7.2 per cent last financial year. The Reserve Bank of India’s Monetary Policy Committee revised its growth projection for the year to 7 per cent in