India anticipates 6.5% growth in fiscal year 2024/25 amid global uncertainties

Investing.com — India’s economic growth is projected to be around 6.5% for the fiscal year 2024/25, according to a government announcement on Thursday. This forecast is closer to the lower end of its earlier projection of 6.5%-7%. The government cited global uncertainties as a potential risk to domestic economic growth.

The finance ministry’s monthly economic report for November indicated a bright growth outlook for the period of October to December. This positive outlook is attributed to resilient rural demand and a rise in urban demand during the first two months of the quarter.

However, the economic growth of India experienced a slower pace than anticipated in the period from July to September. This slowdown was mainly due to a weaker expansion in manufacturing and consumption sectors. Despite these challenges, India has maintained its stance that its economy would grow at a pace of 6.5%-7%, which is considered world-beating, even in a challenging environment.

The report also suggested that the growth outlook for the period from October to March is expected to be better than the first six months of the financial year.

The report further stated, “The combination of monetary policy stance and macroprudential measures by the central bank may have contributed to the demand slowdown.”

The central bank of India has held its interest rates steady for eleven consecutive policy meetings. This decision has been maintained despite calls for rate cuts to support growth, as the country grapples with high inflation.

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