Goldman Sachs ups India's 2024 GDP growth forecast by 10 bps to 6.7%

29 May '24

1 min read

Goldman Sachs ups India's 2024 GDP growth forecast by 10 bps to 6.7%

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Goldman Sachs recently revised its forecast for India's GDP for this year by 10 basis points (bps) to 6.7 per cent, expecting a sustained growth momentum.
It thinks core inflation will bottom out in April-June, and expects it to be around 4-4.5 per cent in July-December.
It also expects the Reserve Bank of India to cut interest rates in Q4 2024.

US-based Goldman Sachs recently revised its forecast for India’s gross domestic product (GDP) for this year by 10 basis points (bps) to 6.7 per cent, expecting a sustained growth momentum.

“In India, growth momentum remains strong, and while we think core inflation will bottom out in April-June, we expect it to be around 4-4.5 per cent in July-December,” Goldman Sachs said. The country’s core inflation averaged 3.4 per cent year on year (YoY) between January and April this year.

Projecting an uptick in core goods inflation due to a rise in manufacturing costs, the global financial institution expects the Reserve Bank of India (RBI) to cut interest rates in the fourth quarter (Q4) this year.

“We continue to expect a shallow easing cycle of total 50 bps rate cuts from the RBI, with 25 bps rate cuts each in October-December and January-March 2025,” it said.

Goldman Sachs also expects two rate cuts by the US Federal Reserve, in September and December this year.

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