India to Forecast Stronger Growth Next Fiscal Year

India plans to project higher economic growth for the next fiscal year, two government officials with direct knowledge of the matter said, adding that fiscal deficit goals are being met and kept.

- Reuters

NEW DELHI:

It is likely to forecast nominal economic growth of 10.3%-10.5%, according to one of the officials. That's higher than the forecast of 9.7% for the current year to end-March given by the government's statistical department this month.

The upbeat outlook could help dispel worries about an economic slowdown which have gripped markets since November. The government expects the world's fifth-biggest economy to log its slowest pace of growth in four years for 2024/25.

N.R. Bhanumurthy, director at Madras School of Economics, said the nominal GDP estimate for the next fiscal year looked realistic, adding that he expects growth to be driven by government capital spending, agriculture and a pickup in exports.