Bloomberg News reported that the central bank maintained its growth forecast Indian economy At a rate of 7.2 percent, during the current fiscal year, which ends next March 31, despite indications of a slowdown in the economy in recent months. The bank’s expectations also exceed the rate targeted by Prime Minister Narendra Modi’s government, which ranges between 6.5 and 7 percent of GDP.
In return, investment banks, including… Goldman Sachs The US expects the Indian economy to grow at 6.5 percent during the current fiscal year.
The central bank’s optimistic outlook is based on its view that spending in rural areas is improving as private investment grows.
However, analysts point to weak consumer spending in urban areas Exports As reasons for concern about economic growth. Experts also say that if these warning signs are not addressed, the Indian Central Bank may risk maintaining its extremely tight monetary policy, which threatens a further decline in economic growth.
For his part, Dheeraj Nim, economic analyst at Australia and New Zealand Banking Corp, said, “The Reserve Bank of India’s expectations are higher than the permissible margin of error in relation to the expectations of analysts and markets. I do not think that the macroeconomic mix has developed in a very encouraging way in recent months, which supports the expectations of the central bank.” “.
This comes as a preliminary survey conducted by HSBC Holdings showed that economic activity in India grew at its weakest pace during 2024, after a decline in the services and manufacturing sectors.
And retreat Purchasing managers index For the manufacturing sector, it reached 56.7 compared to 57.5 in August, while the PMI for the services sector fell to 58.9, compared to 60.9 in the previous month.
The composite PMI fell to 59.3 from 60.7 in the previous month.
A reading of more than 50 points indicates growth in economic activity for the sector, while a reading of less than 50 points indicates a contraction in activity.
