FICCI projects 7% GDP growth for India in 2024-25, expects the repo rate to moderate by the end of the fiscal year
- IBEF
- July 19, 2024
The latest FICCI Economic Outlook Survey, conducted in July 2024, projects India's GDP to grow at a median rate of 7.0% for FY25, with estimates ranging from 6.6% to 7.5%. Despite ongoing challenges, India remains one of the world's fastest-growing economies, driven by insights from leading economists across industry, banking, and financial services sectors. The survey anticipates a notable improvement in agriculture and allied activities, forecasting a growth rate of 3.7% compared to 1.4% in the previous fiscal year. Factors such as the cessation of El Niño effects and predictions of a normal monsoon by the IMD are expected to stabilize kharif crop production.
Growth rates for the industry and services sectors are expected at 6.7% and 7.4%, respectively, a decline from the previous fiscal's 9.5% and 7.6%. Strong investments are forecasted and supported by government capital expenditure and increased private investments. Private consumption is set to recover, driven by agricultural rebound and easing inflation. Inflation projections indicate a CPI-based forecast of 4.5% for 2024–25, which aligns with the RBI’s monetary policy stance. The policy repo rate is anticipated to moderate to 6% by fiscal year-end, reflecting a cautious approach amidst inflation concerns.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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