HDFC Securities expects India GDP to moderate to 6.4% in 2024-25
India's GDP Growth Forecast by HDFC Securities
HDFC Securities, a financial advisory firm, predicts India's GDP to grow by 6.4% in 2024-25. However, there are risks due to a slowdown in urban demand and limited private investment. On the positive side, rural demand and increased government spending are expected to boost growth.
Reserve Bank's Revised Forecast
The Reserve Bank recently lowered its growth forecast for India to 6.6% from 7.2%, following a 5.4% growth in the July-September quarter of 2024-25, which was below the expected 7%.
Future Projections
For 2025-26, HDFC Securities estimates GDP growth to improve to 6.7%. The report highlights that investments will continue to drive growth, with rural consumption outpacing urban due to inflation affecting urban purchasing power.
Sectoral Insights
Dhiraj Relli, MD and CEO of HDFC Securities, stated that India will stand out in GDP growth compared to other countries, with sectors like BFSI, industrials, cement, energy, and IT leading the way.
Government Spending and Economic Survey
The report notes that government capital expenditure was low in the first half of 2024-25 but is expected to increase later. The Economic Survey projected GDP growth at 6.5-7% for 2024-25, acknowledging higher market expectations.
Past Economic Performance
India's GDP grew by 8.2% in 2023-24, maintaining its status as the fastest-growing major economy, with previous growth rates of 7.2% in 2022-23 and 8.7% in 2021-22.
Doubts Revealed
HDFC Securities
HDFC Securities is a company in India that helps people buy and sell stocks and other financial products. They also provide advice on investments and predict how the economy might grow.
GDP
GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year. It helps us understand how well a country's economy is doing.
Urban Demand Slowdown
Urban demand slowdown means that people living in cities are buying less than before. This can happen due to various reasons like high prices or less money to spend.
Private Investment
Private investment refers to money spent by businesses or individuals to start or expand businesses. It is important for creating jobs and growing the economy.
Reserve Bank
The Reserve Bank of India (RBI) is the central bank of India. It manages the country's money supply and interest rates to keep the economy stable.
BFSI
BFSI stands for Banking, Financial Services, and Insurance. It is a sector that includes banks, insurance companies, and other financial institutions.
IT
IT stands for Information Technology. It involves using computers and software to manage information. In India, IT is a big industry that provides many jobs and services.
Your email address will not be published. Required fields are marked *