The Indian economy is expected to have grown 7.8-8.5 per cent in the April-June quarter on the back of robust capital expenditure by Centre and states and a pickup in services sector, economists said. Some drag to growth, however, is expected from weaker momentum in mining, and exports, and a possible slowdown in momentum of government capex as the country will approach the elections, which could dampen economic growth in the second half of the ongoing financial year 2023-24, they said.
The growth estimates are higher than the projection of the Reserve Bank of India (RBI), which has estimated Q1 FY24 real Gross Domestic Product (GDP) growth at 8.0 per cent and full year FY24 growth at 6.5 per cent. Barclays has estimated Q1 GDP growth at 7.8 per cent, while SBI Research and ICRA have pegged Q1 growth at 8.3 per cent and 8.5 per cent, respectively.
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