DBS retains India GDP growth forecast at 7% for FY24-25.

Economy Business

Singapore-headquartered DBS Bank expects India’s economic growth to stay in the 7 percent handle in the April-June 2024 quarter. Thus, foreign bank also retained its India GDP growth forecast for current fiscal at 7 per cent. High frequency indicators suggest 4QFY24 GDP growth is likely to be above 6.8% yoy, implying an upward revision to our FY24 real GDP growth forecast. Cyclical and structural factors have turned conducive for the trajectory, helped by early signs of an improvement in rural demand, and a recovery in household-led capex, which is moving in sync with the government’s higher allocations towards infrastructure.


      An improvement in external balances, including the current account and gross external financial ratio, point to stronger defences in the face of global volatility.

      The upcoming index inclusion augurs well for portfolio inflows, with higher reserves helping to limit large swings in the currency.

     

 

     


About DBS

CEO - Piyush Gupta
HQ - Singapore
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