S&P Global Maintains India's GDP Growth Forecast at 6.8% for FY25
| Why in News | Key Points |
|---|---|
| S&P Global retains 6.8% growth forecast for FY25 | - S&P Global forecasts 6.8% GDP growth for India in FY25. |
| - Despite Q2FY25 GDP growth slowing to 5.4%, S&P maintains its growth outlook for the fiscal year. | |
| Expectations for RBI policy rate cut | - S&P expects RBI to ease the policy repo rate by 50 basis points in FY25. |
| - Retail inflation expected to average 4.5% in FY25, lower than RBI's projection. | |
| Urban consumption and infrastructure driving growth | - Growth driven by urban consumption, service sector expansion, and infrastructure investment. |
| Challenges to growth | - Risks include manufacturing sector weakness, weak agriculture growth, and post-pandemic balance sheet issues. |
| RBI's previous growth forecast | - RBI lowered India's FY25 growth forecast to 6.6% from 6.8%. |
| Q2FY25 GDP performance | - India's GDP grew at 5.4% in the July-September quarter of FY25, weaker than expected. |
| Government's optimistic target | - Government aims for 6.5-7% growth for FY25, expecting stronger growth in H2. |
| Relevant Statistical Facts | - S&P's growth forecast for FY25 is 0.2% higher than RBI's 6.6% estimate. |
| India's Economic Growth in 2023-24 | - India's economy grew by 8.2% in 2023-24. |