Economy Tops 8% in FY24; FM claims that the growth momentum will continue in Prime Minister Modi’s third term

May 31, 2024 / 6:30 p.m. EST

India Q4 GDP Live Updates: What Analysts Are Saying

—Aditi Nayar, Chief Economist, Director, Research and Outreach, Icra

“With transitory factors likely to dampen growth in the first half of FY25, we expect GDP growth to decline from the 8.2% recorded in FY24.”

—Sachchidanand Shukla, Group Chief Economist, Larsen & Toubro

“The broader story of sustained investment growth and subdued consumption combined with flattened government spending continues.”

—Sakshi Gupta, Chief Economist, HDFCBank

“GDP growth has again delivered a wedge surprise and gross value added (GVA) remains high due to higher net tax growth.”

“From a sectoral perspective, manufacturing and construction growth remain strong. On the spending side, consumption growth increased compared to the previous quarter, although it remained in the low single digits.”

“Going forward, we expect the wedge between GDP and gross value added to start normalizing from Q2FY25 as government spending picks up and the overall GDP growth in FY25 will be 6.5%.

—Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares and Stock Brokers

“This year we expect a significant increase in private consumption and a possible moderate slowdown in investment growth. Thanks to solid growth and falling inflation, the Indian economy is in an enviable position to remain the fastest-growing large economy in the world. “

“While these strong growth figures may pose a challenge for the Reserve Bank of India in its monetary policy decisions, slower inflation and ongoing fiscal consolidation should pave the way for moderate rate cuts in the first half of 2025.”

“This emerging scenario bodes well for the Indian equity market.”

—Garima Kapoor, Institutional Equity Economist, Elara Securities

“The high-frequency indicators in the first two months of this financial year suggest that FY25 has started on relatively stable footing.”

“While capex momentum has moderated due to the elections, based on a number of approvals/sanctions, we expect private sector capex to gradually recover in the second half of the year.”

“With weak core inflation prints and forecasts of a normal monsoon, there should be a shift towards consumer demand. We expect GDP to grow at 7% in FY25.”