India’s economy will grow at a rate of more than seven percent in the current financial year (2024-25). Economic research institute NCAER has made this estimate on Wednesday. The big reason behind this is the expectation of better than normal monsoon and no known global risk so far. According to the news of Bhasha, NCAER has said that India’s gross domestic product (GDP) growth rate in the current financial year will be more than seven percent and around 7.5 percent.
The domestic economy remains strong
According to the news, the Institute of Economic Research said in its monthly review that key economic indicators show that the domestic economy remains strong and all agencies have revised their growth estimates for the current financial year. Poonam Gupta, Director General of the National Council of Applied Economic Research (NCAER), said that the GDP growth rate during the current financial year could be more than seven percent and close to 7.5 percent.
Monetary policy is unlikely to be tightened further
Gupta said this outlook is based on the pick-up in economic activity seen in the first quarter, intense policy focus on investment, growth and macroeconomic stability, and expectations of a normal monsoon. He said further tightening of monetary policy is unlikely as inflation has peaked. Finally, the global environment also appears to be favourable, as there are no known global risks so far.
A comprehensive policy framework is needed
Gupta said controlling food prices is a challenge. A comprehensive policy framework may be needed to deal with this problem, including building climate-friendly food supply and gradually shifting towards canned and preserved food supply to bridge the gap between supply and demand over time. Earlier this month, the Reserve Bank of India (RBI) had projected GDP growth rate of 7.2 percent for the current financial year. Retail inflation fell to a 12-month low of 4.7 percent in May, although food inflation remained high.
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