India remains the fastest-growing major economy in the July-September 2023 quarter as well. The growth drivers of India’s Quarter 2 GDP growth are a strong industry push induced by private consumption and investment, steady performance of the agriculture sector, and strong services growth.
Investment in the private sector is beginning to pick up as funds intended for capital expenditure (capex) raised by corporates through different channels from banks/ financial institutions (FIs), external commercial borrowings (ECBs), and initial public offerings (IPOs) – during the first half of 2023-24 were 60 percent higher than during the second half of 2022-23.
Several brokerages, including Wall Street majors BofA and Citigroup, raised their forecasts for India’s economic growth for the current fiscal year, after the country’s economy grew at a faster-than-expected pace in the second quarter.
India’s gross domestic product (GDP), expected to be the fastest growing among major economies this year, grew 7.6% in the quarter ended Sept. 30, ahead of 6.8% expected in a Reuters poll, prompting bets of a higher growth rate for the year ending March 2024.
| BROKERAGE | CURRENT FY23-24 GDP FORECAST | PREVIOUS FY23-24 GDP FORECAST |
| J.P.Morgan | 6.50% | 6.20% |
| BofA Global Research | 6.50% | 6.30% |
| Citigroup | 6.70% | 6.20% |
| Goldman Sachs | 6.7% (CY ’23) | 6.5% (CY ’23) |
| Barclays | 6.70% | 6.30% |
| Deustche bank | 6.80% | 6.40% |
| Morgan Stanley | 6.90% | 6.40% |
| UBS | 6.70% | 6.30% |
| Nomura | 6.70% | 5.90% |
(REUTERS)