India F24 GDP growth likely hit 8%, to grow 7% in FY25: CEA Nageswaran
NEW DELHI : India's economy likely expanded at 8% through fiscal year 2024 (FY24), and growth in the current year is projected at 7%, V Anantha Nageswaran, chief economic adviser to the government, said on Wednesday. Speaking at an event organized by think tank National Council of Applied Economic Research (NCAER), Nageswaran said that for the Indian economy to register 7% or higher growth for the fourth consecutive year in FY25, “a lot would depend on the monsoons." "Right now, the expectations are that we will have an above-normal monsoon. But, spatial and temporal distribution (of rainfall) will matter," he said.
As things stand, India remains the world’s fastest-growing major economy. The Indian economy surged ahead in the December quarter, clocking 8.4% growth and belying fears of a slowdown, driven by solid performances in manufacturing, electricity, and construction sectors. As a result, the National Statistical Office revised its GDP growth estimate for FY24 from 7.3% to 7.6%.
The Reserve Bank of India (RBI) estimates economic growth at 7% for FY24, while the International Monetary Fund (IMF) projects it at 6.8%. Several agencies have recently revised their estimates for India’s FY24 GDP growth. For instance, ratings agency Moody's increased its estimate from 6.6% to 8%, citing strong government expenditure and domestic consumption.
Last month, Fitch Ratings also raised India’s growth forecast for FY25 from 6.5% to 7%, highlighting investment as a significant growth driver. Nageswaran said that he doesn't foresee any significant upside risk to inflation at the moment and expects retail inflation to remain within the midpoint of the RBI's target range of 2-6% in FY25. "There can always be scenarios on the
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