Indian economy is likely to grow at 7 per cent in the current fiscal year starting April, according to the central bank.
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 per cent from 7.0 per cent in the previous year – the third successive year of 7 per cent or above growth.
“The real GDP growth for 2024-25 is projected at 7.0 per cent with risks evenly balanced,” it said. The economy, it said, showed resilience in FY24 despite persistent headwinds.
The government’s continued thrust on capex while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand, as per the central bank’s report.
According to the top bank, the easing of supply chain pressures, broad-based softening in core inflation and early indications of an above normal southwest monsoon augur well for the inflation outlook in 2024-25. Although, low reservoir levels, especially in the southern states and the outlook of above-normal temperatures during the initial months of 2024-25 need close monitoring, says the top bank.Headline inflation moderated by 1.3 percentage points on an annual average basis to 5.4 per cent in 2023-24.The volatility in international crude oil prices, the persisting geopolitical tensions and elevated global financial market volatility also pose upward risk to the inflation trajectory.
Content Source: economictimes.indiatimes.com