India GDP Data 2024: Goldman Sachs Group has decided to reduce India’s GDP forecast for the year 2024 and 2025. The bank has taken this decision due to the reduction in government expenditure. Goldman Sachs has cut its forecast by 20 basis points and estimated GDP to be 6.7 percent in 2024.
Goldman Sachs has reduced its GDP forecast for the next calendar year 2025 and the bank believes that the Indian economy will register growth at the rate of 6.4 percent next year. The bank’s economist Shantanu Sengupta wrote in his report, the reduction in GDP forecast for the current year has been taken due to the 35 percent year-on-year reduction in government expenditure during the long-running Lok Sabha elections in the April-June quarter. The growth rate will be affected next year because the government has set a target of bringing down the fiscal deficit to 4.5 percent of GDP in the budget.
The bank’s economists said in their report, due to the Reserve Bank of India’s strictness on unsecured lending, the pace of domestic borrowing will slow down, which may lead to a decrease in consumption and its effect can be seen on the economy. However, Goldman Sachs has expressed hope of a cut in policy rates by the Reserve Bank of India from December 2024, which will avoid the reduction in GDP growth rate next year to some extent.
Goldman Sachs has reduced the estimate of GDP growth rate to 6.7 percent in 2024. While RBI, while announcing the monetary policy on 8 August 2024, has estimated the GDP to be 7.2 percent in the financial year 2024-25, while 71. percent GDP has been estimated in the first quarter of 2025-26. While in the Economic Survey of 2023-24 presented before the budget, the GDP has been estimated to be 6.5 – 7 percent in the financial year 2024-25.
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