The Reserve Bank of India (RBI) has projected the real Gross Domestic Product (GDP) growth at 7% from 6.5%. Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das on Friday also projected the real GDP growth for next financial year 2024-25.
“Real GDP growth for the current year 2023-24 is projected at 7% – with Q3 at 6.5% and Q4 at 6%. Real GDP growth for Q1 of 2024-25 is projected at 6.7%, for Q2 at 6.5% and for Q3 at 6.4%. The risks are evenly balanced.”
RBI Monetary Policy Live Updates
In the last RBI meeting held on October 6, Governor Das projected real GDP growth for FY24 at 6.5%, with specific quarter-wise estimate. He highlighted steady expansion in urban consumption and signs of revival in rural demand. Factors such as sustained buoyancy in services, consumer and business optimism, government’s focus on capital expenditure, healthy bank and corporate balance sheets, and supply chain normalization were identified as contributors to domestic demand conditions.
Despite the positive outlook, potential headwinds included geopolitical tensions, global economic slowdown, which pose risks to the economic trajectory, Das had said. The risks, however, were deemed evenly balanced.
Ministry of Statistics and Programme Implementation Q2 data
According to data released by the Ministry of Statistics and Programme Implementation on November 30, the Indian economy grew 7.6 per cent during the July-September quarter of the current financial year 2023-24 (Q2 FY24), remaining the fastest-growing major economy in the world, according to gross domestic product (GDP) data released on Thursday, November 30.
“The real GDP or GDP at constant (2011-12) prices in Q2 2023-24 is estimated to attain a level of Rs 41.74 lakh crore, as against Rs 38.78 lakh crore in Q2 2022-23, showing a growth of 7.6 per cent, compared to 6.2 per cent in Q2 2022-23,” the data from the union ministry showed.
In a recent report by S&P Global Ratings released on December 5, it projected India to become the world’s third-largest economy by 2030, with an estimated 7% GDP growth in the fiscal year 2026-27. Currently, India stands as the fifth-largest economy, following the US, China, Germany, and Japan. The report suggests stable GDP growth of 6.4% for the current financial year, climbing to 6.9% in 2024-25 and reaching 7% in 2026-27.
The three-day MPC meeting began on December 6 amid expectations of a status quo on the short-term key lending rate. With GDP growth gaining momentum and inflation under control, analysts anticipate the RBI to maintain the current interest rate.