SBI Research raises India's FY24 GDP forecast to 7% from 6.7%
State Bank of India (SBI)'s Research 'Ecowrap' has raised India's FY24 gross domestic product (GDP) forecast to 7 percent from 6.7 percent earlier. This comes amid higher-than-expected Q2 GDP numbers. "The strong growth numbers for Q2 released today are a harbinger of interesting times ahead and can reinvigorate the interests of global corporations, policymakers, investment gurus, and fund managers across jurisdictions afresh along themes like investments, infrastructure, consumption, and markets by going Overweight," the research said.
Also Read: Indian markets now valued more than India GDP for FY24 "Our optimism has been more than vindicated as we have been penciling growth during the current FY sailing above Reserve Bank of India's (RBI) projection at 6.5 percent for quite some time, despite the vagaries of climate and rain-induced asymmetry seeping in of late. This also makes a case for revisiting the forecasted numbers, First by Mint Street coming at 6.8 percent (6.5 percent earlier) and applying the same logic our numbers inch towards 7 percent now (6.7 percent earlier)," it added. India saw a substantial economic upturn in Q2FY24, with a GDP expansion of 7.6 percent.
This was primarily propelled by robust expansion in manufacturing, marking a 13.9 percent increase, and a 13.3 percent jump in the construction sector. The Gross Value Added (GVA) witnessed a parallel growth of 7.4 percent. During the preceding quarter, the nominal GDP surged by 9.1 percent.
Sector-wise, agriculture, a consistent performer since the COVID-19 pandemic, saw a modest growth of 1.2 percent in Q2, marking an 18-quarter low. While the industry sector rose to 13.2 percent from 5.5 percent in Q1, marking a 9-quarters high. Also Read | India
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