Goldman Sachs forecasts that India’s real GDP growth will increase to 6.5% in the fiscal year 2024-25 (FY25), up from an estimated 6.2% in 2023-24. This growth is expected to be driven by a combination of government spending, particularly in the first half of 2024, which will likely be influenced by pre-election expenditures, and increased private sector investment in the latter half of the year.
The anticipated growth for FY25 is part of a broader economic trend observed in India. While the economy is projected to experience a slight dip in 2024 on a calendar-year basis, falling to 6.3% compared to the estimated 6.4% in 2023, the subsequent fiscal year (FY25) is expected to see an acceleration in growth. This pattern suggests a dynamic economic environment, with varying factors such as government spending, election cycles, and private investment playing significant roles in shaping the country’s GDP growth trajectory.