OPEC stated in its latest monthly update for October that the Indian economy experienced a slight deceleration in growth, registering 6.7%, y-o-y, in 2Q24, down from 7.8%, y-o-y, in 1Q24. This slowdown was primarily driven by a decrease in government expenditure during the election season. The services sector, which has constituted an average of 54% of the economy since 2021, saw growth accelerate to 7.2%, y-o-y, in 2Q24, up from 6.7%, y-o-y, in 1Q24. The unemployment rate declined to 7.8% in September, down from 8.5% in August. With continued government support and spending, along with positive dynamics in consumer spending, India's growth rate for 2024 is projected to be 6.8%, y-o-y, consistent with the previous month's forecast. In 2025, the growth rate is expected to decelerate from the high baseline of 2024 to 6.3%, y-o-y, which is also in line with the previous month's forecast. India's robust economic growth is expected to continue in 2H24, as government spending resumes following the slowdown in 2Q24 due to the election season.
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