India’s economic growth will hit 7.7 percent in April-June, the fastest in a year

India’s economic growth will hit 7.7 percent in April-June, the fastest in a year, leading to massive growth in services, more demand and more government spending, according to a Reuters poll.

All but two of the 51 economists surveyed between August 18 and August 24 expected domestic product growth to exceed 6 percent in the January-March period.
The rate is 1% and estimates vary between 5.6% and 9.1%.

ICRA Chief Economist Aditi Nayar said: “In the first quarter of Fiscal Year 24, business growth was driven by continued demand for services and increased investment, particularly government investment. The main engine of Asia’s third-largest economy has entered a 13-year crisis. ” A private survey showed it was high in July.
Capital expenditures rose from rupees 1,750 billion in the same period last year to rupees 2,785 billion ($33.7 billion) in the April-June 2023 period.

However, growth is expected to slow to 6.2% this quarter, to 6.0% next quarter, and then to 5%.
According to a separate Reuters poll, growth in the last quarter of the fiscal year was 5 percent.

Economists say India needs more growth to provide jobs for millions of unemployed youth.

“We expect India’s investment to grow steadily but not exceed 6.5% over the next five years. We believe policymakers should set a target of 8.
Kunal Kundu, economist at Societe Generale India, said: “An increase of 5-9.0% in the economy will have a positive impact on unemployment,” Kunal Kundu from India told Societe Generale researcher. increased 6.5% this fiscal year.

The data is not expected to change the RBI’s expectation of keeping interest rates unchanged in the first quarter of 2023.

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