The Indian economy expanded by 6.7% in real terms during the April-June quarter of the financial year 2024-25, as reported by the Ministry of Statistics and Programme Implementation on Friday. This growth rate is lower than the 7.1% forecast made by the Reserve Bank of India (RBI).
For the same period last year, India had recorded an 8.2% growth rate. In terms of nominal GDP, the growth rate for the April-June quarter of 2024-25 was 9.7%, compared to 8.5% in the corresponding quarter of the previous fiscal year.
The RBI, during its recent monetary policy meeting, projected a GDP growth of 7.2% for the entire financial year 2024-25. The central bank had anticipated a 7.1% growth for Q1, with subsequent quarterly projections set at 7.2% for Q2, 7.3% for Q3, and 7.2% for Q4.
In the financial year 2023-24, India’s GDP grew by an impressive 8.2%, maintaining its position as the fastest-growing major economy. This follows a growth rate of 7.2% in 2022-23 and 8.7% in 2021-22.
Several global rating agencies and multilateral organizations have revised their growth forecasts for India upward. The International Monetary Fund (IMF) increased its projection for India’s 2024 growth to 7% in July, underscoring the country’s status as the fastest-growing economy among emerging markets and developing economies. The IMF had initially projected a growth rate of 6.5% for 2024, later revising it to 6.8% before the most recent adjustment to 7%. The IMF attributed this growth to robust domestic demand and a rising working-age population.
Last month, the Economic Survey presented in Parliament projected India’s real GDP growth at 6.5-7% for 2024-25. The Survey acknowledged that market expectations might be higher. Real GDP growth is the reported economic growth adjusted for inflation.
The World Bank also revised its forecast for India’s GDP growth in 2024-25, raising it by 20 basis points to 6.6% from its earlier projection of 6.4%. The World Bank noted that India will continue to be the fastest-growing among the world’s largest economies, although the pace of expansion may moderate.
(ani)