Despite improving India's economic expectations through 2024, JPMorgan is nonetheless wary about global challenges.

JPMorgan slightly raised its economic prediction for India through 2024, claiming that a decline in global growth momentum will have an impact on the nation's development.

The financial bank increased its 5.5% growth prediction for 2024 from 5%. The change comes in response to this week's most recent data on the GDP, which showed that the Indian economy expanded by 6.1% from January to March, up from 4.5% the prior quarter.  

Strong exports and an increase in local demand for products and services were the main drivers of the South Asian country's rapid expansion.

According to a report from JPMorgan, "We have been highlighting the continued strength of India's service exports as well as how goods exports were also performing cyclically better than had been anticipated."

She stated that economies that rely primarily on trade are losing ground, but that countries like India that have prioritised "organic drivers" of growth are doing better.

Regarding the nation's chances for development in the upcoming year, JPMorgan is still being cautious.

Despite the government's announcement of increased capex spending, it will take time for this to transfer into a more extensive private investment cycle.

According to Jahangir Aziz, head of developing market economics at JPMorgan, investments from India have not "moved very much" in recent years.

The financial institution also forecasts a decline in Indian exports as the global economy slows and more developed nations enter a recession.

JPMorgan stated that "domestically, the impact of monetary policy normalisation will be felt with a lag" and that "global growth momentum is still expected to slow in the coming quarters."

(Sources: cnbc.com)