RBI retains FY25 growth forecast at 7.2%

October 09, 2024 12:29

The Reserve Bank on Wednesday retained the growth projection for the current fiscal at 7.2 per cent on the back of robust consumption and investment momentum. It, however, lowered the GDP estimate for the second quarter to 7 per cent from 7.2 per cent earlier.

Real gross domestic product (GDP) also grew slower at 6.7 per cent in Q1:2024-25 from earlier projection of 7.1 per cent. Further, RBI revised upwards growth forecast for the third and fourth quarters from 7.3 per cent and 7.2 per cent respectively, to 7.4 per cent.

In August policy also, RBI had projected the real GDP growth at 7.2 per cent for the fiscal. RBI Governor Shaktikanta Das while announcing the bi-monthly monetary policy said India's growth story remains intact as its fundamental drivers consumption and investment demand are gaining momentum.

"Prospects of private consumption, the mainstay of aggregate demand, look bright on the back of improved agricultural outlook and rural demand. Sustained buoyancy in services would also support urban demand. Government expenditure of the Centre and states is expected to pick up pace in line with the Budget Estimates," he said.

Investment activity would benefit from consumer and business optimism, the government's continued thrust on capex and healthy balance sheets of banks and corporates.

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