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Strength from rural economy, GDP growth estimated to be 6.3% in current financial year: SBI – India tv hindi

by Aaryan Srivastav
February 19, 2025
Strength from rural economy, GDP growth estimated to be 6.3% in current financial year: SBI - India tv hindi

Photo: File GDP

State Bank of India (SBI) in its research report has estimated the growth rate of GDP (GDP) to be 6.3 percent during the current financial year (2024-25). According to the report, taking advantage of 36 high frequency indicators, the estimated GDP growth for the third quarter of the current financial year should be between 6.2 percent to 6.3 percent. According to the National Statistics Office (NSO), ‘Real’ and ‘Nominal’ GDP growth for 2024–25 are estimated to be 6.4 percent and 9.7 percent respectively. The report said, healthy rural economy is strengthening stability and maintaining momentum in other areas. The recession in existing domestic inflation encourages high discretionary expenditure and promotes demand-based growth.

Capital expenditure is seen to improve

It said, there is a improvement in capital expenditure in the third quarter of the current financial year. Due to geopolitical developments and supply chain disruption, the recession has affected not only India but also other countries in the third quarter of the calendar 2024. According to SBI report, despite this, India remains one of the fastest growing economies. The recent global growth forecast of the International Monetary Fund (IMF) has estimated that India’s growth rate will be 6.5 percent in both the current financial year 2024-25 and the upcoming financial year 2025-26 due to strong domestic demand and policy intervention by the government.

The economy will increase at a rate of 6.4% in December quarter

Rating agency Iqra said that India’s GDP (GDP) has estimated to grow at a rate of 6.4 percent in the October-December quarter. The rating agency has explained the reason for the increased government spending amid uneven consumption. The growth rate of the Indian economy in April-June was 6.7 percent, but due to the government’s reduction in capital expenditure and weak consumption demand due to general elections, it slowed down to the lowest level of seven quarters in the September quarter. Ekra’s Chief Economist Aditi Nair said that India’s economic performance in the third quarter of the current financial year (2024-25), India’s economic performance on capital and revenue expenditure, rapid increase in total government spending (central and state), high growth in service exports, business Improvement in exports, good production of major kharif crops, etc. were benefited, which strengthened rural perception.

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