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By Malvika Gurung
Investing.com — The leading global analytics company CRISIL (NS:) expects India’s GDP to grow at 6.8% annually over the next five fiscal years, led by capital and productivity and sees it touching 6% in the financial year 2023-24.
For India Inc, it believes the revenue growth to touch double digits in the upcoming fiscal year despite a slowdown in economic growth and interest rate hikes.
The analytics company expects that on the domestic front, the peak impact of rate hikes, which have risen 250 bps since May 2022, will play out in FY24.
“India’s medium-term growth prospects are healthier. At present, nearly 9% of the infrastructure and industrial capex is green. We see this number rising to 15% by fiscal 2027. Down the road, the impact of climate risk mitigation will be felt across revenue, commodity prices, export markets and capital spending,” said the MD & CEO of CRISIL, Amish Mehta.
India Inc’s revenue growth in the upcoming fiscal is expected to be led by a 10-12% revenue growth in the non-commodity sectors despite benign commodity prices.
The group’s operating margin is also expected to improve by 120-170 basis points in FY24, boosted by factors including commodity prices, the full effect of price hikes conducted in FY23 and volume spur.
Further, margin expansion in FY24 is pegged to be broad-based, following similar improvements across sectors as reducing commodity prices cool costs, and revenue increases on volume expansion.
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