Mumbai: The largest public sector bank in the country, State Bank of India (SBI) has revised its forecast for India’s GDP growth in the financial year 2024-25 (FY25). The lender has predicted India’s gross domestic product (GDP) to grow at 6.3 per cent. Earlier the National Statistical Office (NSO) predicted India’s GDP growth at 6.4 per cent.
‘Historically, the difference between RBI’s estimate and NSO’s estimate is always in the range of 20-30 bps and hence the 6.4 per cent estimate of FY25 is along expected and reasonable lines. We, however, believe that GDP growth for FY25 could be around 6.3 per cent, with downward bias,’ the SBI said in its GDP forecast.
The first advance estimates, released by the government, for FY25 suggest a GDP growth rate of 6.4 per cent, a sharp decline from 8.2 per cent in FY24. The gross value added (GVA) growth is also pegged at 6.4 per cent. Despite these challenges, per capita nominal GDP is expected to rise significantly, increasing by Rs 35,000 compared to FY23.
According to the NSO’s data, agriculture and allied activities are projected to grow by 3.8 per cent in FY25, up from 1.4 per cent in FY24. Industry is expected to grow at 6.2 per cent in FY25, down from 9.5 per cent in FY24, while services is likely to grow by 7.2 per cent, a slight decrease from 7.6 per cent in FY24.
The report underlined the significance of government consumption, predicting nominal growth of 8.5 per cent and real growth of 4.1 per cent. Private consumption has an anticipated real growth rate of 7.3 per cent in FY25, up from 4 per cent in FY24.
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