According to a top worldwide expert, the Indian economy is entering a “Goldilocks period” with favorable conditions for development and profitability as the stock markets hit record highs amid a boom in new investments with GDP predicted to expand at 7% for FY25.
Strong fundamentals across a range of dimensions present the perfect environment for the Indian economy to expand, according to Kenneth Andrade of Old Bridge Mutual Fund.
Andrade offered a cautiously positive but still cautious assessment of a number of industries in a report, citing infrastructure, IT, and some chemical and real estate divisions as areas of interest.
The report presented a positive picture of the economy and stated that corporate capacity utilisation is about 90%, which is a good sign of excellent profitability growth for the current fiscal year.
It stated that instead of looking for undervalued chances, which are hard to come by, investors should align themselves with growth enterprises.
The significance of aligning with growth enterprises and exercising patience to wait for opportunities to invest at favorable prices was underscored in the study by Old Bridge Mutual Fund.
The Reserve Bank of India (RBI) reports that the demand conditions have improved in the second quarter of 2024–25, with a revival of rural spending and an improvement in the outlook for agriculture showing signs of quickening momentum in the Indian economy.
The last monthly per capita consumption expenditure (MPCE) survey of the NSSO shows that the gap between rural and urban areas is closing as spending in rural areas surpasses that of urban segments.
Achieving higher levels of development is largely dependent on manufacturing, which must account for 20–25 percent of GDP for India to become a major global manufacturing hub.
The International Monetary Fund (IMF) has increased its prediction for India’s GDP growth in 2024–25 to 7% from 6.8% before due to the country’s “improving private consumption, particularly in rural India.”
The IMF has maintained its 6.5% forecast for India’s economic growth in 2025–2026.
Leading trade association FICCI has similarly anticipated a 7% annual median GDP growth rate for 2024–2025.
