RBI MPC announcements: GDP growth for 2024-25 projected at 7%, says Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das during the Monetary Policy Committee meeting announcements on Thursday stated that the GDP growth for 2024-25 is projected at 7 per cent. “The risks are evenly balanced,” said Governor Das. 

Real GDP for 2024-25 Q1 is now projected at 7.2 per cent, from 6.7 per cent in the previous announcement in December. Governor Das stated that real GDP growth for Q2 of 2024-25 is projected at 6.8 per cent, Q3 at 7 per cent, and Q4 at 6.9 per cent. The projection has increased from the previous projection of 6.5 per cent at Q2, 6.4 per cent at Q3. 

“Among the key drivers on demand side, household consumption is expected to improve, while prospects of fixed investment remain bright owing to upturn in the private capex cycle, improved business sentiments, healthy balance sheets of banks and corporates; and government’s continued thrust on capital expenditure. Improving outlook for global trade and rising integration in global supply chain will support net external demand. Headwinds from geopolitical tensions, volatility in international financial markets and geoeconomic fragmentation, however, pose risks to the outlook,” said Governor Das. 

Global growth is expected to remain steady in 2024 with heterogeneity across regions, said Shaktikanta Das. Public debt in developed economies are much higher than in emerging economies, said the RBI Governor. India's debts are expected to moderate in the years to come, he said. 

He said that the investment cycle has gained steam aided by a sustained thrust of government capital expenditure, and that rural demand continues to gather pace while urban consumption remains strong.

Governor Shaktikanta Das said that going by the Interim Budget, presented by Finance Minister Nirmala Sitharaman on February 1, the government is adhering to fiscal consolidation.

The RBI also left the repo rate unchanged at 6.50 per cent, decided by a 5:1 majority to remain focused on "withdrawal of accommodation". Today's announcements were in line with the expectations of experts and market watchers.

Also read: RBI MPC meeting live updates: Status quo. GDP growth seen at 7%, inflation at 4.5%

Also read: RBI MPC meet: Central bank maintains status quo, keeps repo rate unchanged at 6.5%