RBI Ups GDP Growth Forecast to 7.2% Amid Rising Private Consumption and Rural Revival

The Reserve Bank of India has revised its GDP growth projection for the current fiscal year to 7.2%, citing rising private consumption and revived rural demand. RBI Governor Shaktikanta Das highlighted the resilience in domestic economic activity, driven by strengthened manufacturing and buoyant services, alongside a positive outlook for investment.


PTI | Mumbai | Updated: 07-06-2024 11:44 IST | Created: 07-06-2024 11:44 IST
RBI Ups GDP Growth Forecast to 7.2% Amid Rising Private Consumption and Rural Revival
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The Reserve Bank of India (RBI) has revised its GDP growth projection for the current fiscal year, raising it to 7.2% from the earlier estimate of 7%. This adjustment, announced on Friday, is attributed to rising private consumption and a revival of demand in rural areas.

RBI Governor Shaktikanta Das, during the unveiling of the bi-monthly monetary policy, indicated that the National Statistical Office (NSO) placed India's real GDP growth at 8.2% for 2023-24. 'During 2024-25 so far, domestic economic activity has maintained resilience,' he noted, emphasizing that manufacturing activity is bolstered by strengthening domestic demand.

Das also underscored the buoyancy in the services sector, the recovery in private consumption spurred by steady discretionary spending in urban areas, and enhanced farm sector activity boosting rural demand. He projected a 7.2% GDP growth for 2024-25 and highlighted the positive signs from high capacity utilization, business optimism, and healthy bank and corporate balance sheets.

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