The State Bank of India (SBI), in its research, has estimated GDP growth during the current financial year (2024-25) to be 6.3 per cent, assuming that the NSO does not make major revisions to the erstwhile first and second quarter estimates.
The report said that leveraging 36 high-frequency indicators, the estimated GDP growth for the third quarter of the current financial year should be between 6.2 per cent and 6.3 per cent.
According to the National Statistics Office (NSO), the real and nominal GDP growth rates for 2024-25 are projected at 6.4 per cent and 9.7 per cent, respectively.
The report said that a healthy rural economy is reinforcing stability and sustains momentum in other sectors.
The slowdown in the current household inflation expectations encourages higher discretionary spending and drives demand-led growth, the report said.
Capital expenditure is showing improvement in the third quarter of the current financial year, the report said.
The slowdown in the third quarter of the calendar year 2024 due to geopolitical developments and supply chain disruptions impacted not only India but other countries also.
Despite that, India continued to remain one of the fastest-growing economies, according to the SBI report.
A recent IMF global growth forecast has estimated India’s growth to be at 6.5 per cent for both the current financial year, and subsequent fiscal on the back of robust domestic demand and policy interventions by the government.