India’s GDP Growth Forecast 2024-25: Eco Survey: Rediff Moneynews

New Delhi, Jul 22 (PTI) India’s GDP is expected to grow 6.5-7 per cent in the current fiscal amid global challenges that could impact exports, said the Economic Survey 2023-24 tabled in Parliament on Monday.

The expected growth for 2024-2025 is lower than the 8.2 percent economic growth estimated for the previous budget year.

The Reserve Bank forecasts GDP growth for the fiscal year ending March 2025 to be 7.2 percent.

International bodies such as the IMF and the ADB predict that India will grow at 7 percent.

“…the survey cautiously forecasts real GDP growth of 6.5-7 per cent, with risks balanced, taking into account that market expectations are on the high side,” said the document tabled in Parliament by Finance Minister Nirmala Sitharaman.

It said domestic growth engines have supported economic growth in 2023-24 despite uncertain global economic performance. Improved balance sheets will help the private sector meet strong investment demand.

The survey also added a warning: “After the good growth of the past three years, private capital formation may become somewhat more cautious amid fears of cheaper imports from countries with excess capacity.”

While exports of goods are likely to increase as growth prospects improve in developed economies, exports of services are also likely to increase further.

Normal rainfall forecast by the India Meteorological Department and satisfactory spread of southwest monsoon so far are expected to improve the performance of the agriculture sector and support revival in rural demand, the ministry said.

However, according to the Survey, the monsoon season has yet to begin.