Future growth trajectory of India to be led by private investment's revival: SBI Report

The report further stated that India's real GDP growth rate for FY24 is estimated at 9.2 percent, making it the highest in the past 12 years, except for FY22.

Future growth trajectory of the country will be led by revival in the private investment, as per  a report by the State Bank of India (SBI), ANI reported.

The decline in gross capital formation (GCF) in FY24 is a matter of concern, the report stated and a revival in investment by private corporations will be important for India's future economic growth.

It highlighted that gross capital formation, the overall investment in India, dropped from 32.6 percent of GDP in FY23 to 31.4 percent in FY24.

The major reason for this decline is the slowdown in private sector investment, It had reached a 10-year high of 25.8 percent of GDP in FY23 but fell to 24.0 percent in FY24, the report added.

Despite this, public sector investment rose and reached an all-time high of 8.0 percent of GDP in FY24. Both public and government investment showed growth compared to the previous year, which helped support overall investment levels, the report further added.

"Both public and government investment exhibited growth in FY24 as compared to FY23. Even, public sector investment reached to an all-time high level," it stated.

As per the report, India's real GDP growth rate for FY24 is estimated at 9.2 percent, making it the highest in the past 12 years, except for FY22, when GDP grew 9.7 percent, the highest since 1947.

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