Thursday , December 26 2024

RBI reduced the estimate of GDP growth rate for the financial year 2024-25 to 6.6 percent.

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Mumbai/New Delhi, 06 December (Hindustan Reporter). The Reserve Bank of India (RBI) has reduced the forecast of gross domestic product (GDP) growth rate for the current financial year 2024-25 to 6.6 percent. RBI had earlier estimated the economic growth rate to be 7.2 percent. This decision was taken because the real GDP in the second quarter (July-September) of the current financial year was 5.4 percent, which is much lower than expected.

Giving information about the decision taken in the review meeting of the Monetary Policy Committee (MPC) here on Friday, Reserve Bank Governor Shaktikanta Das said that the decision to reduce the estimate of GDP growth rate to 6.6 percent has been taken with a majority of 4:2. He said that the reason for the decline in growth rate was the huge decline in the industrial growth rate, which declined from 7.4 percent in the first quarter to 2.1 percent in the second quarter. He said that the reasons for this were weak performance of manufacturing companies, decline in mining activities and low demand for electricity. However, he said industrial activity is expected to normalize and recover from the low level of the previous quarter.

He said that RBI has reduced the estimate of GDP rate in the third quarter of the current financial year 2024-25 from 7.4 percent to 6.8 percent. The growth rate estimate for the fourth quarter has been reduced from 7.4 percent to 7.2 percent. With this, the growth rate estimate for the first quarter of the financial year 2025-26 has been reduced from 7.3 percent to 6.9 percent. In the current financial year, the country’s GDP growth rate has been 5.4 percent in the July-September quarter, whereas the GDP in the April-June first quarter was 6.7 percent.