Digital economy playing major role in boosting India’s growth, says finance ministry

New Delhi: Along with the physical economy, the digital economy is also playing a major role in promoting India’s economic growth, the Union finance ministry said on Friday, adding that it is comfortable with the 6.5% real gross domestic product (GDP) growth projection for FY24 with symmetric risks.

“Digitalisation is expected to serve as a critical and distinguishing feature in unfolding India’s growth story in the 21st century,” the finance ministry said in its monthly economic report released on September 22. India’s GDP growth in the quarter ending June (Q1) was 7.8%. The Reserve Bank of India (RBI) in August projected a growth rate of 6.5% for 2023-24 with quarterly growth numbers being 8% in Q1, 6.5% in Q2, 6% in Q3and 5.7% in Q4.

Risk factors include rising crude oil prices, the monsoon deficit in August that could impact both Kharif and Rabi crops, and global stock market corrections, according to the report.