Indian economy grew by 6.2% in real terms during the October-December quarter of the current financial year 2024-25, according to official data released by the Ministry of Statistics and Programme Implementation on Friday.
The October-December growth was higher than the 5.6% recorded in the July-September quarter. However, it fell short of the Reserve Bank of India’s (RBI) forecast of 6.8%.
The GDP figures for both April-June and July-September also grew at a slower pace than the central bank’s estimates. The weaker-than-expected GDP growth can be attributed to sluggish consumption and recent stock market performance.
The RBI has projected real GDP growth for 2024-25 at 6.6%, with the economy expected to expand by 7.2% in the January-March quarter, according to its December monetary policy review.
According to estimates by the Ministry of Statistics and Programme Implementation, India’s real GDP is expected to grow by 6.5% in 2024-25, compared to 8.2% in 2023-24, which is 10 basis points lower than the RBI’s projection. Meanwhile, nominal GDP is projected to grow at 9.7% in 2024-25, slightly above the 9.6% growth recorded in 2023-24.
For 2025-26, India’s economy is expected to expand between 6.3% and 6.8%, as outlined in the Economic Survey presented on January 31.
India remained the fastest-growing major economy, recording 8.2% GDP growth in 2023-24, following 7.2% growth in 2022-23 and 8.7% in 2021-22.
The World Bank on Friday said that India must sustain an average growth rate of 7.8% over the next 22 years to realize its vision of becoming a developed nation by 2047. However, it stressed that achieving this goal would depend on bold reforms and their effective execution.
(ANI)
