India’s impressive Q2 GDP growth of 7.6 per cent has prompted several analysts and international brokerage houses to revise their yearly forecasts upwards. 

Goldman Sachs has increased India’s calendar year 2023 growth forecast by 20 basis points to 6.7 per cent year-on-year. It has, however, kept its 2024 forecast unchanged at 6.2 per cent.

On the other hand, Morgan Stanley has raised the financial year 2024 growth forecast to 6.9 per cent from 6.4 per cent earlier. For the financial year 2025, the international brokerage has, however, maintained its estimates at 6.5%. 

Citing a pick up in investment activity, Citi has hiked the financial year 2024 GDP forecast by 50 basis points to 6.7 per cent. 

Axis Capital has raised estimates to 6.7 per cent with upside risks. However, Nuvama Institutional Equities has retained the GDP growth forecast at 6.5 per cent.

State Bank of India (SBI) Research has also upped the GDP forecast for fiscal 2023-24 to about 7 per cent from 6.7 per cent earlier. 

DBS now sees growth in the current financial year at 6.8 per cent from 6.4 per cent projected earlier.

Meanwhile, IDFC First Bank has revised upwards its India GDP forecast for the full fiscal to 6.7 per cent from 6.2 per cent projected earlier, Gaura Sen Gupta - India Economist, IDFC FIRST Bank, said in a research note. 

Bank of Baroda Economist Jahnavi Prabhakar sees some support from government spending and a boost from the delayed festive season to assist growth. “Given this, India’s economy is expected to clock a growth higher for FY24 with upward bias of 0.1-0.2 per cent”, said a latest BoB research note. 

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