RBI pegs FY25 GDP growth rate at 7%
Upbeat on improved consumption demand, private capex spends
Key Drivers
- Improving household consumption
- Fixed investments remain bright
- Upturn in pvt capex cycle
- Improved business sentiments
- Healthy balance sheets of banks and corporate
- Govt’s continued capex
Mumbai: The Reserve Bank of India (RBI) on Thursday projected GDP growth for the next financial year at seven per cent on the back of improved household consumption and upturn in private capex cycle. The real GDP growth is, however, lower than 7.3 per cent estimated by the National Statistical Office (NSO) for the current 2023-24 fiscal aided by strong domestic economic activity and investments.
The Indian economy grew 7.2 per cent in 2022-23 fiscal. In its Monetary Policy Statement, 2023-24, RBI Governor Shaktikanta Das said the recovery in Rabi sowing, sustained profitability in manufacturing and underlying resilience of services should support economic activity in 2024-25.
“Among the key drivers on the demand side, household consumption is expected to improve, while prospects of fixed investment remain bright owing to upturn in the private capex cycle, improved business sentiments, healthy balance sheets of banks and corporates; and government’s continued thrust on capital expenditure,” Das said.
