RBI Projects GDP Growth At 7% For 2024-25, Retail Inflation Seen At 4.5%

Mumbai: The Reserve Bank of India (RBI) projected the country's GDP growth for 2024-25 at 7 percent while the forecast for inflation for the year has been retained at 4.5 percent.

Announcing the outcome of the RBI Monetary Policy, RBI Governor Shaktikanta Das said, "Growth has continued to sustain its momentum, surpassing all projections.

"India presents a different picture on account of its fiscal consolidation and faster GDP growth. Domestic economic activity continues to expand at an accelerated pace, supported by fixed investment and an improving global environment. The second advance estimates placed the real GDP growth at 7.6 percent for 2023-24, the third successive year of 7 percent or higher growth."

Headline inflation has eased to 5.1 percent during January and February 2024 from 5.7 percent in December 2023, with core inflation declining steadily over the past nine months to its lowest level in the series. 1 Fuel component of the CPI remained in deflation for six consecutive months. Food inflation pressures, however, accentuated in February, he added.

"...real GDP growth for 2024-25 is projected at 7.0 percent with Q1 at 7.1 percent; Q2 at 6.9 percent; Q3 at 7.0 percent; and Q4 also at 7.0 percent. The risks are evenly balanced," Das added.

He further said that assuming a normal monsoon, CPI inflation for 2024-25 is projected at 4.5 percent with Q1 at 4.9 percent; Q2 at 3.8 percent; Q3 at 4.6 percent; and Q4 at 4.5 percent.