(Bloomberg) -- India’s economic indicators are showing some signs of moderation, though there is “no downside risk” to the government’s growth estimate for the current year, a top government official said.
“Some sectors are a bit slow, but on the other hand, few others sectors are showing additional demand,” Economic Affairs Secretary Ajay Seth said at an event in New Delhi. “That does not indicate that you have any possibility of a downside risk” of growth falling below the government’s 6.5% to 7% estimate, he said.
Seth’s comments come after signs emerged of a slide in spending by urban consumers. Economists have started downgrading their forecasts for gross domestic product growth for the year through March 2025, with investment banks like Goldman Sachs Group Inc. predicting an expansion of 6.5%. The Reserve Bank of India remains more bullish, sticking to its forecast of 7.2% growth. India will report July to September GDP on Nov. 29.
Seth also said the government may “undershoot” its public spending target of 11.1 trillion rupees ($132 billion) in the current year. Government spending, critical to keeping India’s world beating growth rates, has been slow this year due to national elections.
In its monthly bulletin late Wednesday, India central bank said that private consumption is back to being the driver of domestic demand after the three-month long festive period ended with the Hindu festival of Diwali. “It appears that the slack in speed observed in the second quarter of 2024-25 is behind us,” the RBI said.
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