India’s GDP To Grow At 6.3% In 2024: Goldman Sachs

Mumbai, Nov 21 (KNN) The Indian economy is likely to progress at 6.3 per cent in 2024 which would ride on the resilience of macro-economic factors, as per Goldman Sachs’ latest report. 

It would be driven by lower vulnerability to external shocks compared to its peers in the Asia Pacific region.

The global investment bank in its ‘India 2024 outlook’ revealed that repeated supply side shocks are likely to keep headline inflation above 5.1 per cent in 2024 with core inflation facing resistance at 4.5 per cent.
 
With USD 600 billion of forex reserves, the Reserve Bank of India has ample headroom to intervene in the forex markets to keep the currency stable.

According to Goldman Sachs, the rupee is expected to be at Rs 83-84 to the US dollar over the next 3-6 months and appreciate to Rs 82 over a 12-month period.

In the run-up to the general elections next year, government spending is seen driving growth, chiefly populist measures such as subsidies and transfer payments. 

Santanu Sengupta, Chief India Economist at GS, said that after the elections, the government spending is likely to be lower and the slack to be picked up by the private sector.

“While we expect the government to continue its focus on capital spending given the medium-term fiscal consolidation path, the rate of growth in capex will likely decrease from next fiscal year,” the report said.

The report said there is an increased allocation towards rural employment programs, higher cooking gas subsidies, and an extension of the food subsidy program, while State governments in election mode have also made separate outlays to incentivise voters.

(KNN Bureau)