The State Bank of India (SBI) has estimated in a report that India's real GDP growth rate will be 7 percent in the current financial year 2024-25. This is slightly less than the Reserve Bank of India's (RBI) estimate of 7.2 percent. China's growth is falling short compared to India. The International Monetary Fund (IMF) increased China's GDP growth forecast for 2024, but it still reached only 5%. The report said that due to global challenges, the estimate has been reduced marginally by 20 basis points. The report said, "We expect the annual growth rate of real GDP to be 7 percent in FY 2025. Our estimate is 20 basis points lower than the RBI estimate, mainly based on the rapidly emerging global challenges. ”
India is a growing economy
The report also said that the Indian economy is still witnessing strong growth and it will remain one of the fastest growing economies this year. The SBI report said that GDP estimates for FY25 are based on several positive factors, including better fiscal position supported by dividends, expected recovery in agricultural activity due to better monsoon conditions, and a boom in private capital expenditure amid strong manufacturing activity.
