CRISIL expects India's economic growth to soften to 6% this fiscal from 7.2% in the last because of the impact of a slowing global economy on exports and industrial production.
Additionally, the impact of 250 basis points of rate hikes effected by the Monetary Policy Committee of the Reserve Bank of India since May 2022 will have some bearing on private consumption demand.
Yet, India will be the fastest-among G20 country this year.
Central government continues to do the heavy lifting in terms of capital expenditure, which is expected to support growth.
On their part, states should see steady growth in revenue because of the strong momentum in Goods and Services tax collections and devolutions from the Centre.
That said, continuing focus on development and high committed spends (salaries, pensions and interest cost) will keep the expenditure of states elevated and sticky. In the past few years, states have also increased their allocation towards social welfare spends.
While the borrowing limits for this fiscal is lower by 0.5% of gross state domestic product from the last year, the Rs 1.3 lakh crore interest-free capex loans from the Centre this fiscal should help smoothen out spending and catalyse investments.
Against this backdrop, CRISIL is organising a webinar on October 26, 2023, at 3 pm titled, State of affairs, where experts from Ratings and Research will present their views on:
Focus and position on investments of states
Capital outlay trends
Trends in revenue collection and deficits
Outlook on fiscal deficits
Impact of indebtedness on deficit financing
The presentation will be followed by a panel discussion by our eminent speakers, and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
