Now Goldman Sachs too sees India’s economy growing at a faster clip

livemint.com:

NEW DELHI : Goldman Sachs joined a clutch of investment firms that are seeing higher potential for India’s economic growth, encouraged by a strong spell of investment as well as manufacturing activity in the country. Goldman Sachs on Thursday raised its forecast for India's economic growth in calendar 2024 to 6.6%, up 10 basis points (bp), on the back of higher investment spending and activity data. Rating agency Moody's earlier this month raised its forecast for India's GDP growth in 2024 to 6.8% from 6.1%, reflecting both global and domestic optimism in the country's economy on the back of robust manufacturing activity and infrastructure spending.

Over the past two days, Morgan Stanley and S&P Global raised their forecast for India’s economic growth in FY25. "Given the stronger-than-expected print and upward revisions to the earlier series by the statistical office, we raised our CY24 growth forecast forecast by 10bp to 6.6% yoy," Goldman Sachs Economic Research said in a report. High frequency activity data remains strong, with our proprietary indices tracking a rebound in consumption growth at 7.9% yoy in Q1 CY24 (vs.

+3.5% yoy in Q4 CY23), but slower investment growth at 2.3% yoy (vs. +10.6% yoy in Q4 CY23) as the government has front-loaded capex," it added. India’s economy soared ahead in the December quarter (the third quarter of FY24) with a surprise growth of 8.4%, belying fears of tempering as the manufacturing, electricity and construction sectors put up a robust show.