What is the GDP forecast for FY24

GDP forecast for FY24

According to S&P Global Ratings, India’s economy would expand more quickly in FY24 than it did in earlier projections before slowing down in the following fiscal year. Because of significant internal tailwinds, the rating agency increased its GDP growth estimate for the fiscal year 2024 from 6% to 6.4%.

In the initial portion of the present financial year, India’s GDP surpassed the 2019 level by 15.5%, according to the agency. Furthermore, it stated that fixed investment has rebounded far more than individual consumer expenditure.

Since headline inflation is still higher than the RBI’s objective of 4%, S&P anticipates that it will take some time for India’s interest rate cycle to change.

The consumer goods sector’s declining demand caused India’s manufacturing activity to grow at its slowest rate in eight months in October, despite a year-low number of new orders and mounting cost pressures. The rating agency anticipates that in the future, emerging market nations would record stronger domestic demand than their counterparts worldwide. Overall growth in the Asia-Pacific area is anticipated to be on track by the rating agency.

In its most recent WEO, the IMF maintained its 3.0% prediction for global real GDP growth in 2023 but reduced its forecast for 2024 by 0.1 percentage points to 2.9% from its July estimate.