India’s Reserve Bank increased its real GDP prediction for FY24 from 6.5% to 7%.

The actual Gross Domestic Product (GDP) is expected to expand by 7% from 6.5% according to the Reserve Bank of India (RBI). In addition to announcing the bi-monthly monetary policy on Friday, RBI Governor Shaktikanta Das also forecast real GDP growth for the upcoming fiscal year 2024–2025.

Real GDP growth is anticipated to be 7% for the current year, 2023–2024, with Q3 at 6.5% and Q4 at 6%. Real GDP growth is anticipated to be 6.7% in Q1 of 2024–25, 6.5% in Q2 and 6.4% in Q3. There is a balance between the hazards.

Governor Das estimated 6.5% real GDP growth for FY24 at the most recent RBI meeting, which took place on October 6. He provided a detailed forecast for each quarter. He emphasised the indicators of a recovery in rural demand as well as the continuous increase in urban consumption. Domestic demand circumstances were found to be influenced by a number of factors, including the services sector’s ongoing buoyancy, business and consumer optimism, the government’s emphasis on capital investment, strong bank and company balance sheets, and the normalisation of the supply chain.

According to Das, there are risks to the economic trajectory even with the favourable prognosis, including as geopolitical tensions and the global economic recession. Still, it was decided that the hazards were about equal.

The Indian economy continued to be the fastest-growing major economy in the world during the July–September quarter of the current financial year 2023–24 (Q2 FY24), expanding 7.6%, according to data released by the Ministry of Statistics and Programme Implementation on Thursday, November 30.

On December 6, the three-day MPC meeting got underway with predictions of little change in the short-term benchmark lending rate. As inflation declines and GDP growth picks up steam, analysts predict the RBI will keep the present interest rate in place.0

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