Indian Economy Grows 6.7% In April-June Quarter, Below RBI’s 7.1% Forecast

The Indian economy grew by 6.7% in real terms during the April-June quarter of the 2024-25 financial year, according to data released by the Ministry of Statistics and Programme Implementation on Friday. In the same quarter last year, India’s growth was 8.2%.

The nominal GDP grew by 9.7% in the April-June quarter of 2024-25, compared to a growth rate of 8.5% in the same quarter of the previous fiscal year.

The Reserve Bank of India, in its latest monetary policy meeting, projected a GDP growth rate of 7.2% for 2024-25. It anticipates growth rates of 7.1% for Q1, 7.2% for Q2, 7.3% for Q3, and 7.2% for Q4.

India’s GDP grew by an impressive 8.2% during the 2023-24 financial year, continuing its position as the fastest-growing major economy. The economy grew by 7.2% in 2022-23 and 8.7% in 2021-22, according to official data.

Global rating agencies and multilateral organizations have revised their growth forecasts for India upwards. In July, the International Monetary Fund (IMF) raised its growth projection for India in 2024 from 6.8% to 7%, reinforcing the country’s status as the fastest-growing economy among emerging markets and developing economies. The IMF had previously projected a growth rate of 6.5% for 2024, which was revised to 6.8% and then to 7%. The revision was attributed to strong domestic demand and a rising working-age population.

The Economic Survey tabled in Parliament last month projected India’s real GDP growth conservatively at 6.5-7% for 2024-25, acknowledging that market expectations are higher. Real GDP growth is adjusted for inflation.

The World Bank also revised its forecast for India’s GDP growth for the 2024-25 financial year, increasing it by 20 basis points to 6.6% from its earlier projection of 6.4% made in January. The World Bank stated that India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate.

(With ANI Inputs)

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