Economists project continued economic momentum and stability after India reports robust GDP growth in Q4
India's economy witnessed a robust growth rate of 7.8 per cent year-on-year in the January-March quarter, surpassing expectations due to strong performance in the manufacturing sector.
According to government data released on Friday, the GDP growth in the fourth quarter of the FY24, was slightly lower than the revised 8.6% growth in the previous quarter.
Furthermore, economists are optimistic about sustained momentum throughout the year.
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Dharmakirti Joshi, Chief Economist, CRISIL Ltd said that India’s growth continues to 'surprise' on the upside.
«Despite a poor showing by agriculture, provisional estimates peg India’s GDP growth for fiscal 2024 at 8.2%. This beats the 7.6% growth estimated by National Statistical Office (NSO) in February,» Joshi said.
However, he expects agriculture to improve its performance in the current fiscal on the back of normal monsoons and a favorable base effect.
«Signs of a mild slowdown were seen in the fourth quarter, when GDP grew 7.8% and gross value added (GVA) 6.3%. The growth moderation was seen across industry and services. From the demand-side, investment growth moderated this quarter.»
He added: «We expect growth to moderate to 6.8% in current fiscal, with high interest rates and lower fiscal impulse (as the deficit is trimmed to 5.1% in fiscal 2025) tempering demand in non-agricultural sectors.»
«With transient factors likely to dampen growth in the first half of FY25, we expect the GDP growth to decelerate
