India’s GDP growth seen at 6.2% in FY24, fastest among major economies: Reuters poll

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Also Read: Corporate investments are still to show a long-awaited recovery After a stellar 7.8% expansion last quarter, economic growth was expected to moderate to 6.4% in July-September quarter and then drop to 6.0% in the October-December period before slowing to 5.5% in early 2024. A majority of economists, 22 of 36, who answered an additional question said the risks to their FY 2023/2024 GDP growth forecasts were skewed to the downside.

While Narendra Modi's government increased spending in the past few years to build roads, railways, and other infrastructure, helping India defy the global slowdown trend, it has so far failed to create enough jobs. Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! But most economists said expected growth was still well below potential and a drier than normal monsoon season so far could act as a restraint in an economy where agriculture employs about half the workforce in a country of over 1.4 billion people, Reuters reported.

While the poll showed India's retail inflation would average 5.5% this fiscal year and 4.8% next, above the Reserve Bank of India’s (RBI) medium-term target of 4%, over two third of economists, 23 of 34, said the risks were skewed that it would be higher. Even though inflation was not expected to reach that goal across the forecast horizon, economists expect the next move from the Reserve Bank of India to be a cut, the Reuters report said.