India’s GDP growth in FY24 will exceed 7.6% and may be closer to 8% : RBI Governor  

NEW DELHI : Reserve Bank of India Governor Shaktikanta Das said on Wednesday that the Indian Economy is poised to surpass the Central government’s Second Advance estimate of 7.6 percent growth for the ongoing financial year. “I would not hesitate to say that India’s GDP growth in FY24 will exceed 7.6%, it might be closer to 8%,” Das said in an interview with ETNow.

Revealing the predictions outlined during the Monetary Policy Committee’s February session, Das reiterated his belief that India could achieve a growth rate of 7 percent in the upcoming fiscal year, FY25. “I am quite optimistic about next year’s GDP growth,” he added.

State Bank of India also said similar things in its ‘Ecowrap’ research report. According to the report, the third-quarter GDP figures had a profound impact on market sentiment, catching many off guard and pleasantly surprising others. It underscores the significance of adopting prudent policy approaches and viewpoints, which can outshine unwarranted expectations that often lead to vulnerabilities.

In the third quarter of FY24, the Indian economy expanded by 8.4 percent, surpassing analysts’ projections of 6.6 percent growth. However, despite this positive development, concerns have been raised by economists regarding the moderation in GVA (Gross Value Added) growth. Additionally, the Central government has revised its forecast for India’s FY24 growth upwards, raising it from 7.3 percent to 7.6 percent.

Furthermore, Crisil, in its India outlook report, projected that the Indian economy is poised for substantial growth in the upcoming fiscal year, forecasting a GDP growth rate of 6.8 percent. This indicator, the GDP growth rate, measures the year-over-year or quarterly change in a nation’s economic output, offering insight into the pace of economic expansion.

“After a better-than-expected 7.6% this fiscal, India’s real GDP growth will likely moderate to 6.8% in fiscal 2025,” said the Crisil India Outlook report. Currently, India’s GDP stands at $3.6 trillion, positioning it as the world’s fifth-largest economy, following the United States, China, Japan, and Germany. According to Crisil projections, the Indian economy is anticipated to witness substantial growth, reaching $6.7 trillion by the fiscal year 2031.