The Reserve Bank of India on June 7 raised projection of real gross domestic product for the financial year 2024-25 to 7.2 percent, from 7 percent estimated previously, governor Shaktikanta Das.
The governor said the GDP growth in the first quarter is likely to be at 7.3 percent, 7.2 percent in Q2, 7.3 percent in Q3 and 7.2 percent in the last quarter, Das said during the monetary policy committee’s (MPC's) press briefing on June 7.
If the growth projection stands true for the the current year, it will be the 4th straight year of growth above 7 percent, Das said.
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"Domestic economic activity in FY25 to remain resilient... India's manufacturing PMI showing strength and it is currently the highest globally," the governor said.
Das also noted that private consumption is recovering, and highlighted that the revival in rural demand is getting a fillip from farm activities.
RBI MPC: FY25 CPI inflation projection retained at 4.5%
India Meteorological Department's forecast is expected to improve Kharif output, he said
Meanwhile, the central bank governor said that the CPI headline has softened further in March-April, but food inflation still remains elevated.
On June 7, MPC decided to keep the repo rate unchanged at 6.5 percent for the 8th consecutive time with a majority of 4: 2, the governor said at the second bi-monthly monetary policy for the current financial year, adding that the central bank has decided to maintain withdrawal of accommodation stance.
"The pattern of world crisis continues, but India is seeing positive growth. But we need to stay vigilant against new challenges," Das said.
See bright prospects of sustained high growth. RBI will gear up to be future ready to enhance India's global positioning, he added.
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