The PHD Chamber of Commerce and Industry (PHDCCI) on Thursday released Economic Monitor Report for October 2024 projecting India’s GDP growth for 2024-25 to exceed previous forecasts.
It is likely to hover between 7.5% to 8%, it said.
The report attributes this growth to new economic paradigms, such as the country’s vision for Viksit Bharat 2047, and resilient macroeconomic fundamentals despite global challenges.
The report was launched on the occasion of 119th Annual Session of the PHDCCI witnessing a special address by Union Minister of Home Affairs and Cooperation, Amit Shah.
Shah emphasized the significance of the current year for India’s industrial growth, and acknowledged the strong collaboration between the government and industry that is propelling the nation towards achieving a USD 5 trillion economy.
“India is on a remarkable journey to becoming an economic superpower,” the minister said emphasizing the critical role of continued government support and vibrant efforts from the trade and industry sector.
Highlights of bank credit growth:
The Economic Monitor Report highlighted that the gross bank credit growth (year-on-year) stands at 15% in August 2024 as compared to 14.9% in August 2023.
It highlighted that the credit to agriculture and allied activities continued to be robust with the growth of 17.7% (y-o-y) in August 2024, compared with 16.5% during August 2023.
Further, the credit growth to industry strengthened at 9.8% (y-o-y) in August 2024 compared with 5.3% in August 2023.
Among major industries, credit to ‘chemicals and chemical products’, ‘food processing’, ‘petroleum, coal products and nuclear fuels’ and ‘infrastructure’ recorded a higher growth in August 2024 as compared to their respective growth rates a year ago, while credit growth to ‘basic metal and metal product’, and ‘textiles’ moderated, the report highlighted.
Services sector decelerate due to NBFCs:
PHDCCI report said the credit growth to services sector decelerated to 15.6% (y-o-y) in August 2024 from 21% a year ago.
This was primarily due to relatively lower credit growth in ‘non-banking financial companies (NBFCs)’ and ‘trade’ segments.
Personal loans growth moderated to 16.9% (y-o-y) in August 2024 as compared to 18.3% a year ago, largely due to decline in growth recorded in ‘other personal loans’ and ‘vehicle loans’.
