Daijiworld Media Network - Kolkata

Kolkata, Feb 19: The State Bank of India (SBI), in its latest research report, has estimated India's GDP growth for the financial year 2024-25 to be around 6.3%, provided there are no significant revisions to the first and second-quarter estimates by the National Statistical Office (NSO).

Analyzing 36 high-frequency indicators, the report predicts that GDP growth for the third quarter of the current fiscal will range between 6.2% and 6.3%. Meanwhile, the NSO has projected real GDP growth at 6.4% and nominal GDP growth at 9.7% for the same period.

The report highlights that a strong rural economy is playing a crucial role in maintaining economic stability and sustaining growth across sectors. Additionally, lower household inflation expectations have led to an increase in discretionary spending, further boosting demand-driven growth.

Capital expenditure has also shown improvement in the third quarter, reflecting positive investment trends. However, geopolitical tensions and supply chain disruptions in the third quarter of the calendar year 2024 have had a global impact, including on India. Despite these challenges, India remains one of the fastest-growing economies in the world.

A recent International Monetary Fund (IMF) global growth forecast has pegged India’s growth rate at 6.5% for both the current and the next financial year, driven by strong domestic demand and proactive government policy measures.