Goldman Sachs Raises India’s 2024 GDP Growth Forecast to 6.7%

Global investment bank Goldman Sachs has increased its forecast for India’s GDP growth in 2024 to 6.7%. This decision is based on strong indicators suggesting that the country’s growth momentum will continue. However, the bank has delayed its prediction for when the Reserve Bank of India (RBI) will adjust interest rates.

“We expect the investment growth momentum to sustain with extra fiscal space for infrastructure spending given a higher than expected dividend transfer by the RBI,” Goldman Sachs stated in a note while revising the growth estimate.

This optimistic outlook follows similar upgrades from other major institutions. The International Monetary Fund (IMF) recently raised its projection for India’s GDP growth to 6.8%, up from the previous estimate of 6.5%. The Reserve Bank of India (RBI) itself anticipates the economy to grow by 7% in the current fiscal year.

Goldman Sachs also provided insights on the RBI’s future actions regarding interest rates. The report predicts that the RBI will start cutting interest rates in the fourth quarter of 2024, with the first cut likely to happen during the December 2024 meeting. “We continue to expect a shallow easing cycle of total 50 basis points rate cuts,” the report mentioned.

These updates reflect a strong belief in India’s economic resilience and potential for growth, driven by robust investment and infrastructure spending. As global and local agencies align in their positive forecasts, India’s economic future looks promising for 2024.