India is expected to grow at around 6.5% in the fiscal year 2024/25, closer to the lower-end of its 6.5%-7% projection, as global uncertainties pose a threat to domestic growth, the government said on Thursday.
Growth outlook for October to December appears bright, with rural demand remaining resilient and urban demand picking up in the first two months of the quarter, according to the finance ministry’s monthly economic report for November.
India’s economic growth slowed more than expected in July to September hampered by weaker expansion in manufacturing and consumption. India has maintained its economy would grow at a world-beating pace of 6.5%-7% despite a challenging environment.
India’s growth outlook is expected to be better in October to March than in the first six months of the financial year, it said.
India’s economy ends 2024 with solid momentum as business growth hits 4-month high, PMI shows
“The combination of monetary policy stance and macroprudential measures by the central bank may have contributed to the demand slowdown,” the report said.
India’s central bank has kept interest rates unchanged for eleven straight policy meetings despite calls for rate cuts to support growth amid high inflation.
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