India's Economic Growth Forecast: Robust Capex & Business Confidence

New Delhi, May 7 (PTI) Robust capital expenditure by the government and improvement in business confidence will push the country's economic growth in 2024-25, an official said on Tuesday.

Chief Economic Adviser in the Ministry of Rural Development Kuntal Sensarma said that the focus areas in 2024-25 should be infrastructure growth, inclusive development and harnessing demographic dividend, among others.

"The major reasons cited for India's growth prospects in FY25 include robust public investment/ capex push by the government, sustained growth in business and consumer confidence, and strong services sector, among others," industry body PHDCCI said in a statement quoting Sensarma.

He was speaking at the chamber's conference on 'Economy: Inflation, Investments, Interest Rates and Inclusive Growth (EIIII) Perspective for FY 2024-25' here.

Speaking at the event, Sakshi Gupta, Principal Economist at HDFC Bank, said that despite the challenges of the global economy, India is consistently performing well and inflation is under the target band set by the monetary policy committee.

She estimated that going forward the Indian economy will grow at the rate of 8 per cent.

Presenting the interim Budget in February, Finance Minister Nirmala Sitharaman announced a Rs 11.11 lakh crore spending on infrastructure.