Date: 29/05/2024

GDP growth seen higher

Goldman Sachs has revised upwards its forecast for India’s gross domestic product (GDP) growth for calendar year 2024 (CY24) by 10 basis points (bps) to 6.7 per cent. It expects the Reserve Bank of India (RBI) to cut interest rates during the fourth quarter of the current calendar year (Q4-CY24)/third quarter of the current financial year (Q3-FY25). India’s core inflation averaged 3.4 per cent year-on-year (Y-o-Y) in January 2024 till April, which, analysts at Goldman Sachs said, is expected to bottom out in the second quarter Q2-CY24. It may rise to the 4-4.5 per cent mark in the second half of CY24. Going forward, it expects investment growth momentum to sustain with extra fiscal space for infrastructure spending, given a higher-than-expected dividend transfer by the RBI, said a report.
Source: Exim News Service: New York, May 28