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Synopsis: The RBI’s latest MPC meeting projected India’s GDP growth at 7.2% for FY 2024-25. Strong performances in key sectors like agriculture, manufacturing, and services, along with rising domestic demand, are driving this growth. The risks to this projection remain balanced, with global resilience continuing to support India’s economic stability.
In its latest Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) projected the GDP growth rate for the fiscal year 2024-25 at 7.2%, indicating a positive outlook for India’s economy. RBI Governor Shaktikanta Das highlighted that economic resilience continues, with estimates for Q1 at 7.3%, Q2 at 7.2%, and Q3 and Q4 at 7.4%. The growth is driven by strong industrial and service sector activity, which has bolstered the country's overall performance.
Das also noted that key sectors like agriculture, manufacturing, and services are performing well, aided by favorable monsoon conditions, improving domestic demand, and supportive policies. The global economic environment remains resilient, with steady domestic demand contributing to this positive projection. Rural demand is showing signs of improvement, while urban demand remains stable.
Additionally, private investment and government spending are on the rise, further supporting the economic outlook. However, Das cautioned that risks are evenly balanced, indicating potential challenges that could affect growth in the coming quarters.
