The GDP of the country underperformed in the first quarter. It was not able to meet the expectations set by RBI under the GDP Projection for FY25. However, the data still points toward stable economic growth of the country. Let us find out the reason why. RBI’s Governor Shaktikanta Das showed the reasons that point to the growth of the economy in the coming quarters of the financial year. The reports shared on Thursday expect the country’s GDP to grow by 7.2%. Let us look at the GDP Projection for FY25 and its current performance below.
RBI Expects The GDP To Grow By 7.2%
RBI expects the GDP to grow by 7.2% in the current financial year. However, the current performance of the GDP might show a fall. There is still hope for a better performance. RBI Projection for FY25 expects the RBI to grow at 7.2% at the end of the complete year. However, the Q1 (from April to June) results show only 6.7% growth. It is less than both polled estimates and RBI’s GDP projection for FY25. If we talk about the polled estimates, it was 6.9%. If we talk about the RBI’s projection, it goes to 7.1%.
Despite this low performance, Governor Shaktikanta Das is still positive about the growth of the GDP in future. He further mention that the Fundamental growth of the Indian economy is not slowing. It is still following its momentum and will slowly grow further. Thus, it is a positive sign for the economy. There were a lot of discussions in the world around the upcoming recession. However, India is still giving a positive response.
India’s move towards long-term sustainable growth will help it achieve the goal of Viksit Bharat 2047. Apart from that, the economy is also getting more international investors. Thus, the Indian share market will become the busiest market in the financial year. For sustainable growth, Consumption and Investment are the two big pillars. Thus, the investments are already at their peak in the country. Apart from that, the increased investments will also contribute to increased consumption.
As more foreign investors are choosing to invest in India, the country will be able to provide more work opportunities. The development will lead to an increase in salaries increasing the consumption capacity of the workers. GDP tells a lot about a country’s growth. Thus, India’s GDP points out its increasingly sustainable habits. We hope you get enough details about the GDP projection for FY25 and its current performance above.