India's GDP Growth Estimated At 6.3% In FY25: SBI Study

A study by the State Bank of India forecasts the country's gross domestic product growing by 6.3% in the ongoing financial year 2024-25.

The SBI study, however, added that its prediction is based on the belief that the National Statistical Office won't make major revisions to the erstwhile first and second quarter estimates.

The report estimated that based on 36 high-frequency indicators, GDP growth for the third quarter of the current financial year should be between 6.2% and 6.3%.

Meanwhile, the National Statistics Office projects the real and nominal GDP growth rates for fiscal 2025 at 6.4% and 9.7%, respectively.

The report said that a healthy rural economy is reinforcing stability and sustaining momentum in other sectors.

The slowdown in the current household inflation expectations encourages higher discretionary spending and drives demand-led growth, the report said.

It noted that capital expenditure is showing improvement in the third quarter of the current fiscal.

The report also pointed out that the slowdown in the July-September quarter impacted not just India but other countries as well. The slowdown was on account of geopolitical developments and supply chain disruptions.

The SBI study highlighted that despite the slowdown, India was one of the fastest-growing economies.

A recent International Monetary Fund forecast has estimated India's growth to be at 6.5% for both — fiscal 2025 and fiscal 2026 — on the back of robust domestic demand and policy interventions by the government.

(with PTI inputs)