India’s economic growth will slow sharply this fiscal year as a global economic slowdown hampers domestic growth prospects, according to a Reuters poll.
While growth is expected to be faster than other major economies, it will still be below the long-term average. In the latest survey, all respondents expected India’s economic growth to decelerate significantly this fiscal year, with the most optimistic forecast at 6.6 percent and the most pessimistic at 4.4 percent.
Societe Generale India economist Kunal Kundu said India’s real GDP is expected to slow sharply after the severe contraction caused by the epidemic as the technical rebound triggered by pent-up demand ends.
They believe that India’s domestic demand will barely support economic activity, but will not promote economic growth.
They expect public capex-led infrastructure investment to be the main growth driver, while private sector capex is likely to remain fairly subdued.