New Delhi: India’s real GDP growth rate may decline marginally to 6.3% in 2024. Report published by US based brokerage firm, Goldman Sachs predicted this.
‘Subsidies and transfer payments as we head into the general elections in Q2 2024 will likely be the growth driver in the first half. Post-elections, we expect investment growth to re-accelerate, especially from the private side. While we expect the government to continue its focus on capital spending, given the medium-term fiscal consolidation path, the rate of growth in capex will likely decrease from next fiscal year,’ Goldman Sachs said.
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The American brokerage firm said it expects growth to accelerate to 6.5% for FY25 from the 6.2% it has projected for the ongoing FY24. It expects headline consumer price inflation to come at 5.1% for 2024, against 4.7% estimated by the Reserve Bank. This will, however, be lower than the 5.7% expected in 2023 . Core inflation is expected to decline to 4.5% year-on-year (average) in 2024 from an estimated 5.1% in 2023.
As per the report, the current account deficit will widen to 1.9% of GDP in 2024 from the 1.3% expected in 2023, but the Indian rupee is set to appreciate to 82 against the dollar at 2024-end against the 83 level at the end of 2023.
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