S&P Global raises India’s GDP growth forecast for FY25 to 6.8%
The growth projection for the current fiscal is lower than the Reserve Bank of India (RBI) and government’s projection of 7 per cent.
India’s Gross Domestic Product (GDP) grew 8.4 per cent in the October-December quarter of the FY 2023-24, showed the data released by the Ministry of Statistics and Programme Implementation on January 29.
The growth rate of the GDP was higher than the 7.6 per cent in the previous quarter. The growth rate in the December quarter is higher than the estimates by experts.
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Several economists and polls had predicted the GDP growth in the Q3 FY 24 to remain at 6.64 per cent, citing decline in government expenditure and slow industrial output.
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Besides, India’s infrastructure output in January 2024 remained 3.6 per cent year on year. The economy is estimated to grow at 7.6 per cent for the 2023-24 Financial Year.
The higher than estimates growth was mainly aided by 11.6 per cent growth rate in manufacturing sector and 9.5 per cent growth rate in the construction sector.
However, the growth in agriculture sector declined 0.8 per cent in Q3 as compared to 1.6 per cent growth in the previous quarter.
The manufacturing sector expanded 11.6 per cent, down from 14.4 per cent in the second quarter.
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