India's latest GDP data brought a surprise on the upside. The economy is likely to sustain this momentum, and the real GDP growth will rise to 8.0-8.5% in 2024-25 (Apr-Mar) on the back of robust public capital expenditure and its multiplier effect, said economist Charan Singh.

"This government will pump as much money as required, but most of it will be planned in such a way that it has a multiplier effect in the long run," said Singh, chief executive officer and founder director of think tank EGROW Foundation. Singh is also the non-executive chairman of Punjab and Sind Bank, and has earlier held key positions such as senior economist at the International Monetary Fund and research director (economic policy, debt management) at the Reserve Bank of India.

According to the government's first advance estimate released earlier this month, India's GDP growth is projected to rise to 7.3% in the current financial year on the back of strong government-led investment. The Economic Survey had pegged GDP growth for the fiscal year at 6.0-6.8%.

Detailing his outlook for the Indian economy in the next financial year, Singh said he expects the country's nominal GDP growth to be 13.0-13.5% in 2024-25 and headline inflation at 5.0-5.5%. The economist also said he expects the government to continue with its pet plan to invigorate the economy – "they will continue with capital expenditure," he said.

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