Pranjul Bhandari said investment activity has been more resilient in 2022 than consumption. (file)
Mumbai:
India’s economy is expected to grow 5.5% in the next fiscal year, a notch below the projected potential rate of 6%, an HSBC economist said on Thursday, as the pace of growth in the country gradually slows down.
The Indian economy grew by 8.7% in the year ending March 2022, and is expected to grow by 6.8% in the current fiscal.
The Reserve Bank of India’s survey of professional forecasters, released in December, projected growth of 6% in 2023/24.
“While both exports and imports have slowed over the past few months, the former has slowed more sharply than the latter, reflecting global growth momentum,” said Pranjul Bhandari, head India and Indonesia economist at HSBC Securities & Capital Markets. indicates a sharp decline in India) said in a note to customers.
Economists at the brokerage expect domestic demand to remain strong compared to global demand, noting that demand for goods – more than demand for services during the pandemic – has fallen in recent months.
“Urban demand will significantly outpace rural demand in 2022, but is also slowing down from mid-2022,” the note said.
Rural demand, which has been weak during 2022, may however turn higher due to strong sowing in the winter season and moderation in rural inflation.
Pranjal Bhandari said investment activity has been more resilient than consumption spending in 2022, helped by government capex and rising investment intentions by large corporates.
HSBC further said that the changing growth dynamics are likely to have an impact on upcoming policy events such as the federal budget and the central bank’s monetary policy meetings.
“Our overall message is that growth is slowing gradually, but not uniformly,” the economist said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
featured video of the day
Sensex jumps over 650 points, halts 4-day losing streak