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Economic growth to sustain till FY25

June 12, 2023

Economic growth to sustain till FY25
The Reserve Bank of India’s forward-looking surveys indicate sustained economic growth till FY25, with real gross fixed capital formation (GFCF) expected to rise to 7.4 per cent in FY25 from 6.8 per cent in FY24, as per projections by 39 economists.

Consumer confidence in the domestic economy has been improving since the pandemic even as households inflation expectations are seeing normalising over the course of the current financial year.
 
However, merchandise exports are expected to decline 2.9 per cent and imports by 4.0 per cent, in US dollar terms, during FY24.
 
In turn, exports are likely to grow 8.3 per cent and imports 7.8 per cent in FY25, per the results of the 82nd Survey of Professional Forecasters on Macroeconomic Indicators.
 
Accordingly, experts project current account deficit (CAD) at 1.5 per cent of GDP in FY24, and 1.6 per cent in FY25.
 
Real GDP (gross domestic product) growth forecast for FY24 was unchanged at 6.0 per cent, and is expected to grow 6.4 per cent in FY25. Forecasts for FY24 GDP growth were in the range of 5.3-6.8 per cent and for FY25 between 6.0 and 7.6 per cent.
 
RBI has pegged GDP growth for FY24 at 6.5 per cent, with Q1 growth seen at 8.0 per cent, Q2 at 6.5 per cent, Q3 at 6.0 per cent, and Q4 at 5.7 per cent.
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