India to see 6.5% FY25 GDP growth, FY24 estimate 6.2%: Goldman Sachs

The country’s real GDP growth will likely moderate marginally to 6.3 per cent in 2024 from an estimated 6.4 per cent for 2023, it said in a report.

Average headline inflation is likely to be above target at 5.1 per cent year on year (YoY) in 2024 due to repeated supply shocks, it said.

Average core inflation is projected to fall to 4.5 per cent YoY next year from an estimated 5.1 per cent in 2023.

Goldman Sachs said consumer price index-based (CPI) inflation will average 4.9 per cent in FY25, down from 5.6 per cent in FY24, while core inflation will average 4.6 per cent in FY24 and FY25, according to Indian media reports.

The Indian government will cut fiscal deficit by 50 basis points to 5.4 per cent of GDP in FY25 from 5.9 per cent in FY24, the investment firm projected.

The current account deficit is likely to increase by 60 basis points to 1.9 per cent of GDP in 2024 from 1.3 per cent in 2023 due to higher oil prices, slower growth in trading partners and steady domestic growth.

ALCHEMPro News Desk (DS)