India’s GDP growth accelerated to a 4-quarter high of 7.8% YoY in Q1 FY24 from 6.1% in Q4 FY23Download Report
QuantEco Research || Q1 FY24 GDP - Comfort with caution
The strength in domestic consumption outweighed the drag from global demand during Q1. Outperformance of services over industry and strong anchoring by public investments continue to dominate the overall narrative. While we continue to expect the underlying strength in investment theme to prevail in FY24, services/consumption growth could moderate on waning of pent-up demand and lagged impact of monetary tightening. In addition, ongoing gradual fiscal consolidation, persistence of geopolitical uncertainty, and El Nino related disruption could also cast a moderating influence on economic activity. As such, we maintain our call of moderation in FY24 GDP growth to 6.0% from 7.2% in FY23.