Team Blitz India
NEW DELHI: India’s growth story remains intact as its fundamental drivers – consumption and investment demand – are gaining momentum, the RBI Governor Shaktikanta Das has stressed, adding that the country is likely to see real GDP growth at 7.2 per cent for FY 2024-25.
Prospects of private consumption, the mainstay of aggregate demand, look bright on the back of improved agricultural outlook and rural demand. Sustained buoyancy in services would also support urban demand.
The Government expenditure of the Centre and the states is expected to pick up pace in line with the Budget Estimates, Das said in the RBI’s monthly bulletin.
“Investment activity would benefit from consumer and business optimism, Government’s continued thrust on capex and healthy balance sheets of banks and corporates,” he added.
Taking all these factors into consideration, the real GDP growth for 2024- 25 is projected at 7.2 per cent, with Q2 at 7.0 per cent; Q3 at 7.4 per cent; and Q4 at 7.4 per cent. The real GDP growth for Q1 2025-26 is projected at 7.3 per cent, according to the RBI document.
Meanwhile, the CPI inflation for 2024-25 is projected at 4.5 per cent, with Q2 at 4.1 per cent; Q3 at 4.8 per cent; and Q4 at 4.2 per cent. CPI inflation for Q1 2025-26 is projected at 4.3 per cent.
“The CPI print for the month of September is expected to see a big jump due to unfavourable base effects and pick up in food price momentum, caused by the lingering effects of a shortfall in the production of onion, potato and chana dal (gram) in 2023-24, among other factors,” Das mentioned.
The RBI Governor further stated that domestic growth has sustained its momentum, with private consumption and investment growing in tandem. Moving forward, the RBI will continue to be nimble and flexible in its liquidity management operations.
“We will deploy an appropriate mix of instruments to modulate both frictional and durable liquidity so as to ensure that money market interest rates evolve in an orderly manner,” Das said.
