At the end of the year 51st RBI MPC meeting, Governor Shaktikanta Das expected the country’s real GDP growth to be 7.2% for the fiscal year 2024-25. The quarterly growth estimates of sales were highlighted showing estimates for Q2 at 7%, Q3 and Q4 at 7.4% and Q1 of the following year at 7.3%. Das said risks are global risks evenly balanced and pointed out that global economy is proving durable.
Expenditure on GDP has increased and touched the apex level in past 5 years and government expenditure decrease in the Q1. The Gross Value Added (GVA) on the other hand rose by 8% largely due to new performance in industry GVA and services GVA figures. Das pointed out that reading showed that DLTL or domestic economic activity at a monthly pace remains stable, where the agriculture, manufacturing, and service sectors remain quite robust.
The Agricultural growth has been boosted by above expectation Southwest monsoon rain along with increased kharif sowing area. A well established domestic consumption, lower costs of inputs, and government encouragement is favoring the manufacturing sector. The role and growth of services sector remains pretty vigorous up to the present.
At the demand side, demand from the rural consumers is on the rise and the demand from the urban consumers is also high. Government consumption is also on the up, investment activity likewise remains robust. Personal consumption expenditure is strengthening further and after declining in the first quarter, government expenditure also has revived.
Further, there is a positive contribution of services exports for the external front of the growth. In his own assessment of the future, Das remained optimistic on India’s economic growth and insisted that centres around consumption and investment demand are rebounding and sustaining the growth narrative.
