Fixed Investment in India
The Indian economy recorded an average growth rate of 5.8% in fixed investment over the decade to 2022. In 2022, the fixed investment growth was 11.4%. For more investment information, visit our dedicated page.
India Investment Chart
India Investment Data
2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|
Fixed Investment (ann. var. %) | 11.2 | 1.1 | -7.1 | 17.5 | 6.6 |
GDP growth strongly exceeds expectations in July–September
GDP growth slowed slightly to 7.6% year on year in July–September, the second quarter of FY 2023 (April–June: +7.8 yoy). However, the print strongly exceeded market expectations.
Boosted by pre-election spending, government consumption rebounded, growing 12.4% in July–September (April–June: -0.7% yoy). Strong government outlays also helped lead fixed investment growth to accelerate to 11.0% in July–September, from the 8.0% expansion recorded in the prior quarter. Adding a further positive impulse, exports of goods and services rebounded, growing 4.3% in July–September (April–June: -7.7% yoy). That said, dragging on the expansion, household spending growth waned to 3.1% year-on-year in July–September compared to a 6.0% expansion in April–June. In addition, imports of goods and services—which detract from the external sector reading—grew at a faster rate of 16.7% in July–September (April–June: +10.1% yoy).
Our panelists expect GDP growth to slow in the coming quarters, remaining around 6.0% through to the end of 2024; past rate hikes by the Central Bank will weigh on domestic demand. That said, India will remain one of Asia’s fastest-growing economies, boosted by strong foreign investment and government spending.
Analysts at EIU said: “In the light of the latest data, we have revised our forecast for real GDP growth for 2023/24 from 6.5% to 6.7%.” Analysts at Nomura warned about interpreting data for the next quarter given the recent Diwali holiday: “The non-synchronous timing of Diwali this year (in November as opposed to October last year) means that most high frequency growth indicators will be elevated on a y-o-y basis in October, but will also record a sharp drop in November when the opposing effects kick in. Hence, the ‘true’ strength of growth tracking in Q4 is likely to be confirmed only when we have enough data to consider the average performance in the two months.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Indian investment projections for the next ten years from a panel of 10 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable investment forecast available for Indian investment.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Indian investment projections.
Want to get access to the full dataset of Indian investment forecasts? Send an email to info@focus-economics.com.
Latest Global GDP News
-
According to a preliminary estimate, GDP growth picked up to 1.3% on a seasonally adjusted quarter-on-quarter basis in the first...
-
China: Economy records quickest expansion since Q2 2023 in the first quarter
GDP growth picked up to 5.3% year on year in the first quarter of 2024, above the 5.2% in the... -
Singapore: Economy records best year-on-year growth reading since Q3 2022 in Q1 2024
According to a flash release, GDP growth accelerated to 2.7% year on year in the first quarter of 2024, from... -
Guatemala: GDP grows at the slowest clip in over three years in Q4
GDP growth halved to 2.0% year on year at the tail-end of 2023 from an upwardly revised 4.0% in the... -
United Kingdom: Economic activity growth loses pace in February
GDP rose 0.1% month-on-month in seasonally adjusted terms in February (January: +0.3% mom), matching market expectations. On a rolling quarterly... -
Norway: Economic activity set back in February
The Norwegian economy stumbled halfway through the first quarter; total GDP contracted 0.9% in seasonally adjusted month-on-month terms in February,... -
Russia: Economy loses momentum in Q4
Growth lost steam at the tail end of 2023, with GDP increasing 4.9% on an annual basis in the fourth...