India GDP: The Finance Ministry has expressed confidence in its monthly review that India's economy will grow at a rate of about 6.5 percent in the financial year 2025. It also highlights the importance of improving India's fiscal responsibility framework to achieve the goal of developed India by the financial year 2047-48. The Finance Ministry has said in its monthly review estimate that rural demand remains resilient. This is reflected in the growth of 23.2 per cent and 9.8 per cent respectively in two-wheeler and 3-wheeler vehicle sales and domestic tractor sales in October-November 2024.

Urban demand is increasing- Finance Ministry

The Finance Ministry also said that urban demand is growing, passenger vehicle sales grew 13.4 per cent year-on-year in October-November 2024 and domestic air passenger traffic has seen strong growth. As a result, the Finance Ministry expects the economy to grow at around 6.5 per cent in real terms in FY25.

In the second quarter of the current financial year 2024-25, July-September, the GDP growth rate had come down to a seven-quarter low of 5.4 percent. In the previous quarter, the economic growth rate was 6.7 percent. Due to this, the estimated growth rate figures for the coming quarters are important.

EY's report released yesterday also showed similar estimates for FY25

Earlier yesterday, EY's report had come out which said that the Indian economy is expected to grow at the rate of 6.5 percent in the current and next financial year. In the September quarter, the country's economic growth rate was much lower than expected i.e. 5.4 percent. The reason for this is the decline in private consumption expenditure and gross fixed capital formation. 

The report said that GDP is estimated to be 5.4 percent in the second quarter of FY 2024-25, which is the lowest level in seven quarters. Apart from the fact that private investment demand has not picked up, the growth of government investment expenditure has been negative. It has declined by 15.4 percent in the first half of the current financial year.

Also know EY Economy Watch December estimates

'EY Economy Watch December 2024' has projected India's economic growth rate to be 6.5 percent for FY 2024-25 (financial year April 2024 to March 2024) and FY 2025-26.

It said a re-engineered approach is crucial for sustainable debt management, eliminating government savings and promoting investment-led growth to pave the way for India's transformation into a developed economy.

DK Srivastava, Chief Policy Advisor, EY India, said that the proposed amendments in the Fiscal Responsibility and Budget Management (FRBM) Act are necessary to enable India to pursue sustainable growth while maintaining fiscal prudence. He said that these changes will not only address the current challenges but will also open the way for India's transformation into a developed economy.