The Reserve Bank has upheld its GDP growth projection for the fiscal year 2024-25 at 7 percent, slightly below the 7.6 percent forecasted expansion for the previous fiscal year.
In its previous monetary policy announcement in February, the RBI had set the GDP growth rate at 7 percent for the upcoming financial year starting from April 1.
During the announcement of the first bi-monthly monetary policy for the current fiscal year, RBI Governor Shaktikanta Das noted the increasing momentum in rural demand and anticipated sustained growth in the manufacturing sector, which should drive private investment.
However, there are challenges posed by geopolitical tensions and disruptions in global trade routes.
Das further outlined the expectations for real GDP growth, with projections of 7 percent for the fiscal year 2024-25, with growth rates of 7 percent in the June quarter, 6.9 percent in the September quarter, and 7 percent each in the third and fourth quarters.
Earlier this week, Prime Minister Narendra Modi emphasized the necessity for the Reserve Bank to prioritize economic growth while also maintaining focus on trust and stability.
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