RBI Lowers FY25 GDP Growth Rate By A Huge 60 Bps, Says Slowdown Bottomed Out In Jul-Sep

Reserve Bank of India Governor Shaktikanta Das, in the monetary policy meeting announcements, lowered the estimated GDP growth for 2024-25 to 6.6 per cent, with growth in the Q3 estimated at 6.8 per cent, and Q4 at 7.2 per cent. Growth in the Q1 of next year is estimated to be 6.9 per cent, and Q2 at 7.3, he said. “The risks are evenly balanced,” he added. In the October, August and June MPC announcements, Das had retained the GDP growth estimate for 2024-25 at 7.2 per cent, with slight variations in the quarterly growths. In the October MPC announcements, Das had estimated GDP for Q3 2024-25 at 7.4 per cent, Q4 at 7.2 per cent, and Q1 of next year at 7.3 per cent, with risks evenly balanced. GDP of 5.4 per cent in Q2 turned out to be much lower than expected, said Das on Friday, driven by weaknesses in the manufacturing sector. The slowdown bottomed out in the second quarter and since then has recovered driven by festive demand and rural consumption. Das had in the previous MPC announcements estimated Q2 growth to be at 7 per cent.