NEW DELHI: Global investment bank Goldman Sachs has raised India’s GDP growth forecast for the calendar year 2024 to 6.7 per cent, citing robust indicators that point to the growth momentum sustaining, but pushed back its forecast by a quarter for the RBI to move on interest rates.
“We expect investment growth momentum to sustain with extra fiscal space for infrastructure spending given a higher than expected dividend transfer by the RBI,” the investment bank said in a note, while revising the growth estimate.
Several multilateral agencies, including the International Monetary Fund (IMF), have raised India’s GDP growth projection after stellar expansion in the Oct-Dec quarter of 2023-24.
The IMF now estimates India’s GDP to grow 6.8%, higher than the earlier estimate of 6.5%. The Reserve Bank of India (RBI) expects the economy to grow by 7% in the current fiscal year.
The report said that they expect the RBI to cut interest rates in the fourth quarter of calendar year 2024 with the first cut most likely in the Dec 2024 meeting. “We continue to expect a shallow easing cycle of total 50 basis points rate cuts,” said the report.
