RBI projects real GDP growth in 2024 at 6.6%

RBI projects India's real GDP growth for FY25 at 6.6%, with Q3 at 6.8% and Q4 at 7.2%. Governor Das optimistic.

The Reserve Bank of India (RBI) on Friday (December 6, 2024_) has projected India’s real GDP growth for FY25  at 6.6%, with Q3 at 6.8% and Q4 at 7.2%..

The real GDP growth in the first quarter of 2025-26 is projected at 6.9% and the Q2 at 7.3%.

According to RBI Governor Shaktikanta Das, “the risks are evenly balanced”.

“On the domestic growth situation, growth in real GDP in the second quarter at 5.4% turned out to be much lower than anticipated. This decline in growth was driven mainly by a substantial deceleration in industrial growth from 7.4% in Q1 to 2.1% in Q2 due to subdued performance of manufacturing companies, contraction in mining activity and lower electricity demand,” the RBI Governor said.

The weaknesses in the manufacturing sector, however, was not broadbased but was limited to specific sectors such as petroleum, iron and steel, and cement.

“Going forward, high-frequency indicators that the slowdown in economic activity bottomed out in Q2, and it has since recovered, aided by strong festive demand and pick up in rural activities,” the RBI Governor said.

Agricultural growth is supported by healthy Kharif crop, healthy reservoir levels and better Rabi sowing, Mr. Das said.