Despite concerns regarding fiscal consolidation, India's economic trajectory appears favorable, with contained deficits and declining inflation
FinTech BizNews Service
Mumbai, March 1, 2024: GDP announcement has highlighted India's robust performance in Q3 with an impressive growth rate of 8.4%, the projected estimate for FY24 stands at 7.6%. with Tanvee Gupta Jain, UBS India Economist, has shared a detailed analysis, shedding light on India's GDP growth trajectory and offering insights into the forecast for FY25.
She states, “India's economy continues to show resilience, with real GDP growth surpassing expectations at 8.4%YoY in the December quarter of 2023. This robust growth, coupled with positive signals from leading indicators, prompts us to revise our FY25 GDP growth forecast upward to 7%YoY. While consumption growth remains subdued, we anticipate a gradual recovery, especially in the premium and rural segments.
Investment is expected to broaden, supported by public and private sectors, with housing and corporate capex showing promise post-elections. Additionally, marginal improvements in exports are foreseen. Despite concerns regarding fiscal consolidation, India's economic trajectory appears favorable, with contained deficits and declining inflation. Regarding monetary policy, the RBI might adopt a neutral stance in the upcoming policy review, with a possible shallow rate cut cycle later in FY25, contingent on global trends and domestic inflation dynamics."
