RBI MPC announcements: GDP growth rate for 2024-25 projected to be 7.2%, says Gov Shaktikanta Das

RBI MPC announcements: Reserve Bank of India Governor Shaktikanta Das estimated real GDP for 2024-25 to be 7.2 per cent. He projected real GDP for 2024-25 Q2 at 7 per cent, Q3 at 7.4 per cent, and Q4 at 7.4 per cent in the 51st meeting of the MPC. Real GDP growth of Q1 of next year has been estimated at 7.3 per cent. The risks are evenly balanced, he said. 

In the August MPC, RBI had estimated real GDP growth for 2024-25 at 7.2 per cent, with a slight change for Q1 at 7.1 per cent, Q2, Q3, and Q4 unchanged at 7.2 per cent, 7.3 per cent, and 7.2 per cent respectively.

In the June MPC, the RBI had estimated GDP for 2024-25 to be 7.2 per cent. He had projected real GDP for 2024-25 Q1 at 7.3 per cent, Q2 at 7.2 per cent, Q3 at 7.3 per cent, and Q4 at 7.2 per cent, with risks evenly balanced.

Global economy has remained resilient since the last meeting, he said. 

The share of investment in the GDP reached its highest level since 2012-13. Government expenditure on the other hand contracted during the first quarter. On the supply side, gross value added (GVA) expanded by 8 per cent surpassing the GDP growth, aided by strong industrial and services sector activities. High frequency indicators available so far suggest that domestic economic activity continues to be steady. The main components from the supply side i.e. agriculture, manufacturing, and services remain resilient,” he added.

Governor Das said that agricultural growth has been supported by above-normal Southwest Monsoon rainfall and better kharif sowing. Manufacturing activity is gaining on the back of improving domestic demand, lower input costs and a supportive government policy environment. 

The services sector continues to grow at a strong pace, he said. 

On the demand side, rural demand is trending upwards while the urban demand is holding firm, the governor said. Government consumption is improving, investment activity remains buoyant, government spending rebounding from a contraction in the first quarter, private investment continues to gain steam, he added. 

Services export is supporting overall growth in the external front. 

“Looking ahead, India’s growth story remains intact as its fundamental drivers namely consumption and investment demand are gaining momentum,” said Governor Das.