New Delhi: The World Bank has revised India’s growth forecast for FY24/25. The World Bank hiked India’s growth forecast to 7 per cent from 6.6 per cent.
The World Bank report also said India was the fastest growing global economy in FY23/24 at 8.2 per cent. This is due to an improved labour market and continuing robust service trade. The global body said that India’s growth was boosted by public infrastructure investment and increased household real estate investments. On the supply side it was backed by a buoyant manufacturing sector that grew by 9.9 per cent, and resilient services activity that offset an underperforming agriculture sector.
Meanwhile, India’s gross domestic product (GDP) grew 6.7 per cent year-on-year during the April-June 2024 quarter (Q1 FY25). This growth rate is the slowest in five quarters or 15-months. India’s gross domestic product was at 8.2 per cent a year ago. According to the latest data released by the National Statistical Office (NSO), India’s gross value added or GVA also grew 6.8 per cent during April-June 2024. GVA is GDP minus net product taxes.
Also Read: GST collections grow to Rs 1.75 lakh crore in August
Gross fixed capital formation (GFCF), which is an indicator of investment activity in the country, grew 7.5 per cent to Rs 15.20 lakh crore during the June 2024 quarter. GFCF accounts for 34.8 per cent of the GDP. Private final consumption expenditure (PFCE) grew 7.4 per cent year-on-year to Rs 24.56 lakh crore in Q1 FY25.
Government final consumption expenditure (GFCE) fell 0.24 per cent YoY to Rs 4.14 lakh crore, amid parliamentary elections. Net taxes, at current prices, has observed the growth rate of 8 per cent in Q1 of FY 2024-25 resulting in 0.1% point gap between the growth rates of GVA and GDP.
Post Your Comments