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Indian economy is expected to grow at 6.5% in FY25: Finance Ministry Report

Mumbai: The Indian economy is expected to grow at around 6.5 per cent in the current financial year 2024-25. The finance ministry said in its latest report. It also said after a moderation in Q2 of FY25, the outlook for Q3 appears bright.

‘On the demand side, rural demand remains resilient, as highlighted by the 23.2 per cent and 9.8 per cent growth in two & three-wheeler sales and domestic tractor sales, respectively, in October-November 2024. Urban demand is picking up, with passenger vehicle sales registering YoY growth of 13.4 per cent in October-November 2024 and domestic air passenger traffic witnessing robust growth. Consequently, we expect the economy to grow at around 6.5 per cent in real terms in FY25,’ the ministry’s Monthly Economic Review November 2024.

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On inflation, the report said the RBI has projected CPI inflation at 4.8 per cent for FY25, with Q3 at 5.7 per cent and Q4 at 4.5 per cent.

The Indian economy grew 6.7 per cent in the June quarter and 5.4 per cent in the July-September period. Earlier this month, the Reserve Bank of India also significantly lowered the growth projection for the current fiscal year to 6.6 per cent from 7.2 per cent earlier.’

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