RBI MPC Announces Revised GDP Growth Projections for 2024-25
In the 51st meeting of the Monetary Policy Committee (MPC), Reserve Bank of India (RBI) Governor Shaktikanta Das announced revised projections for real GDP growth in 2024-25. The estimated growth rate is now 7.2%, with a slight upward revision from the previous estimate of 7.1% in the August MPC meeting.
The revised projections indicate a more optimistic outlook for the Indian economy. The growth rate for Q1 of 2024-25 is estimated at 7.3%, followed by 7% in Q2, 7.4% in Q3, and 7.4% in Q4. This signifies a steady growth trajectory throughout the year.
Governor Das attributed the positive outlook to several factors, including the resilience of the global economy, strong performance of the industrial and services sectors, and robust agricultural growth supported by favorable monsoon conditions. He also highlighted the increasing share of investment in the GDP, reaching its highest level since 2012-13.
On the demand side, both rural and urban demand are showing positive trends, with government consumption and private investment gaining momentum. Services exports are also contributing to overall growth.
Governor Das expressed confidence in India's growth story, emphasizing the strong fundamentals driving consumption and investment demand. He believes that these factors will continue to propel the economy forward in the coming year.