Posted 11/27/2023, 7:14:28 AM
India GDP Growth Moderates Slightly But Remains Robust, Driven by Strong Services and Urban Consumer Demand
- India's GDP growth likely moderated to 6.8% in Q3 but remained strong, supported by robust services and urban demand despite global slowdown hampering exports
- Forecasters see the slowdown from 7.8% in Q2 as minor; India still expected to grow over 6% in coming years, fastest among major economies
- Consumer demand stayed strong, contributing 60% of GDP growth, largely urban-driven; utilities, services, construction also robust
- Capital expenditure higher in H1 2022/23 versus last year; further increase expected pre-2024 election, seen as key GDP growth driver alongside consumption
- Rural demand hit by high prices but expected to recover as gap with urban consumption narrows over next 2-3 years due to improving purchasing power