The economy is likely to grow at 7 percent in financial year 2024-25, the Reserve Bank of India (RBI) said in its annual report released on May 30.
The economy showed resilience in FY24 despite persistent headwinds, the central bank said.
The Indian economy, it said, expanded at a robust pace in 2023-24 (April 2023 to March 2024 financial year), with real GDP growth accelerating to 7.6 percent from 7.0 percent in the previous year,” the report said.
It was the third successive year of 7 percent or above growth, RBI said.
“The real GDP growth for 2024-25 is projected at 7.0 per cent with risks evenly balanced,” it said.
The central bank sees a strong in India’s GDP on the back of solid investment demand, which is supported by healthy balance sheets of banks and corporates, the government’s focus on capital expenditure and prudent monetary, regulatory and fiscal policies.
The Reserve Bank’s Annual Report for 2023-24 said that the Indian economy is navigating the drag from an adverse global macroeconomic and financial environment.
The report said that the Indian economy is well-placed to step up growth trajectory over the next decade in an environment of macroeconomic and financial stability.
“As headline inflation eases towards the target, it will spur consumption demand especially in rural areas,” it said.
The RBI also emphasised that the Indian economy would have to navigate challenges posed by rapid adoption of AI/ML (artificial intelligence/machine learning) technologies as well as recurrent climate shocks.