CFOs cautiously optimistic about 6-6.8% growth

The economic survey presented in the Parliament on Tuesday by Finance Minister Nirmala Sitharaman forecast the real GDP to grow between 6-6.8% for 2023-24. This is compared to 7% growth estimate for the current fiscal that ends March 31 and 8.7% growth clocked in the preceding year. ETCFO finds out what CFOs think about the economic survey's projection for 2023-24.

1. V-Mart CFO Anand Agarwal

I will prefer to be optimistic and hope that this is achieved, rather than being critical. The problem is that while headwinds are strong and visible, tailwinds are few and relatively unknown. Biggest headwind will be reviving consumption, which has slowed down; rising global oil prices and stronger Dollar - which will make key imports more expensive.

2. Suzuki Motorcycle India Pvt Ltd CFO Sneha Oberoi

There will be lots of pressure to achieve that growth, especially when global consumption is going down due to various known factors and the expectation of an increase in export is also very low. There will be continuous pressure on the Current Account Deficit (CAD) but the expectations of an increase in capital spending by corporates and the government may help to increase domestic demand and employment.

We know that under PLI companies have committed a capex of about Rs 4 lakh crore in next 5 years, so this investment may keep the local demand alive which in turn will definitely help to increase the revenue of the government also by way of GST.

3. DP World CFO Hemant Kumar Ruia

The economic Survey’s projection of 6-6.8% for 2023-24 seems a reasonable estimate. The infrastructure push of the government as well as its Make in India plan are going to spur more domestic consumption, which will be key growth levers.

Having said so, some headwinds are there too. Europe is in recession and the US is faltering. So, countries exporting to such parts, are likely to get affected and in this backdrop, India’s exports may suffer too. Also, the prolonged Russia-Ukraine conflict and the re opening of China may keep commodity inflation at elevated levels globally including in India. But overall, India’s actual growth numbers may end in the 6-6.8% projection for 2023-24.

4. Manipal Hospitals CFO Sameer Agarwal

The economic survey's growth projections are more or less in line with other agencies like IMF, World bank etc and in my view we should remain cautiously optimistic as this will depend on inflation coming down, no other major shock to the global economy and stable oil rates which will ensure a stable current account deficit as well.

Consumption in the economy and tax collections remains robust and with capital expenditure in public and private slated to come back in FY24, India could remain one of the fastest growing economies in the world in FY 24 as well.

5. Cromton Greaves CFO Kaleeswaran Arunachalam

India is well placed amidst global challenges to overcome near term headwinds based on the strong fundamentals in which the country’s economic growth is built on. The continuing investments in infrastructure, digital and other industrial initiatives will help us to March ahead of other nations.

6. Dr Lal PathLabs Group CFO Ved Goel

I think we can achieve this growth provided stable government. We have elections in 10 states in this year and that may impact the overall agenda the current govt is gunning for.