Indian economy grew 6.7% in April-June quarter, lower than RBI’s 7.1% forecast

New Delhi [India], August 30 (ANI): The Indian economy grew by 6.7 per cent in real terms in the April-June quarter of the current financial year 2024-25, Ministry of Statistics and Programme Implementation’s official data showed on Friday.

Last year same quarter, India grew 8.2 per cent.

The nominal GDP has witnessed a growth rate of 9.7 per cent in the April-June quarter of 2024-25 as compared to the growth rate of 8.5 per cent same quarter of last fiscal year.

The Reserve Bank of India, in its latest monetary policy meeting, projected GDP growth for 2024-25 at 7.2 per cent, with growth for Q1 expected at 7.1 per cent, Q2 at 7.2 per cent, Q3 at 7.3 per cent, and Q4 at 7.2 per cent.

India’s GDP grew by an impressive 8.2 per cent during the financial year 2023-24, continuing to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, according to official data.

Many global rating agencies and multilateral organizations have also revised their growth forecasts for India upwards.

In July, the International Monetary Fund (IMF) raised India’s growth projections for 2024 from 6.8 per cent to 7 per cent, reinforcing the country’s status as the fastest-growing economy among emerging markets and developing economies. The IMF had earlier projected a growth rate of 6.5 per cent for 2024, revising it to 6.8 per cent and now 7 per cent. It had attributed robustness and strength in domestic demand and a rising working-age population behind its growth projections.

The Economic Survey tabled in Parliament last month “conservatively” projected India’s real GDP growth at 6.5-7 per cent for 2024-25, acknowledging that market expectations are higher. Real GDP growth is the reported economic growth adjusted for inflation.

The World Bank too had upwardly revised India’s GDP growth forecast for the current financial year 2024-25 by 20 basis points to 6.6 per cent from its earlier projection of 6.4 per cent made in January. World Bank said India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate.