The Reserve Bank of India (RBI) has maintained its forecast for India’s real GDP growth at 7.2% for FY25, despite moderating the outlook for the first quarter. Governor Shaktikanta Das highlighted the resilience of the domestic economy, with strong progress in various sectors such as manufacturing and agriculture. The decision to keep the benchmark rates unchanged at 6.5% reflects a cautious approach in the face of global uncertainties and domestic challenges.
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- The RBI’s Monetary Policy Committee (MPC) retained India’s GDP growth forecast at 7.2% for FY25.
- The outlook for Q1FY25 was moderated to 7.1%, while forecasts for other quarters remained unchanged.
- The Indian economy showed resilience with steady progress in the southwest monsoon and higher Kharif sowing.
- Manufacturing activity is gaining momentum due to improving domestic demand.
- The RBI decided to keep the benchmark rates unchanged at 6.5%.
- India’s GDP growth for FY24 was recorded at 8.2%.
- The Economic Survey of July 2024 forecasted a more conservative growth rate of 6.5-7% for the ongoing financial year.
- Global rating agencies like IMF and ADB projected India’s growth at 7%.
- The survey noted that while the financial sector outlook is positive, vigilance is needed to avoid over-financialization.
- The India Meteorological Department’s forecast of normal rainfall is expected to boost the agriculture sector and rural demand.
