Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The World Bank has revised India's economic growth forecast for the fiscal year ending in March 2025 to 7%, up from 6.6%, driven by recovering agricultural output and rising private consumption. The Reserve Bank of India (RBI) has retained its GDP growth forecast at 7.2%, adjusting quarterly estimates slightly. Despite inflation concerns, the RBI remains optimistic, focusing on domestic drivers of growth. The IMF also raised its growth forecast to 7%, reflecting improved consumption prospects, especially in rural areas. Both institutions see positive trends supporting India's economic resilience amidst external challenges.
The World Bank has increased its forecast for India's economic growth for the fiscal year ending in March 2025 to 7% year-on-year, up from the previous estimate of 6.6% made in April. This adjustment is due to a recovery in agricultural output and a rise in private consumption. Martin Raiser, World Bank Vice President for South Asia, commented that an emerging class of consumers in India is driving the economy forward. He also mentioned that recoveries from crises in Sri Lanka and Pakistan, along with a tourism-driven rebound in Nepal and Bhutan, are contributing to this growth. Advertisement
Meanwhile, the Reserve Bank of India's (RBI) rate-setting committee has maintained its real Gross Domestic Product (GDP) forecast at 7.2% for FY25. The RBI has adjusted its growth projections for various quarters: Q2 is now pegged at 7% (down from 7.2%), Q3 at 7.4% (up from 7.3%), and Q4 also at 7.4%. For Q1 FY26, the growth rate has been set at 7.3%.
At the same time, the central bank maintained its inflation forecast for the fiscal year at 4.5%. This decision was made despite concerns regarding food prices and increasing geopolitical tensions that could disrupt energy supplies and push crude prices higher. The Governor of the Reserve Bank of India (RBI), Das, mentioned that the Monetary Policy Committee (MPC) observed that the domestic growth outlook remained strong, supported by factors such as private consumption and investment. He noted that this situation enables monetary policy to concentrate on achieving a sustainable alignment of inflation with the target.
India's central bank projection reflects the underlying strength of the country's macroeconomic fundamentals, with domestic drivers like private consumption and investment playing a significant role. Additionally, the International Monetary Fund (IMF) has also revised India's GDP growth forecast upwards to 7.0%, highlighting improved prospects for private consumption, particularly in rural areas. The World Bank has similarly upgraded India's growth forecast to 7.0%.
Overall, India's economic growth outlook reflects strong domestic consumption and investment, bolstered by recovery in agricultural sectors and positive forecasts from major financial institutions, positioning the country for sustained development in the coming years.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
