New Delhi: The world is keeping an eye on India's GDP growth. Regarding the country's GDP growth, the country's largest public sector bank, State Bank of India (SBI), said that it has estimated the GDP growth to be 7 percent in the current financial year. At the same time, the Reserve Bank of India (RBI) had estimated it to be 7.2 percent.

GDP growth has declined marginally by 20 basis points due to global concerns and adversities.

Growth may remain at 7 percent

SBI said in its report that GDP growth for the current financial year could be 7 percent. SBI's estimate is 20 bps lower than RBI's estimate which is largely based on global adversities. However, the report clearly stated that despite the rating downgrade, the Indian economy is continuously performing strongly. This year India is expected to be one of the fastest growing economies in the world.

The SBI report said its GDP forecast for FY25 is based on several positive factors, including an increase in fiscal buffers, improved agricultural activity due to better monsoon conditions, and a pick-up in private capital expenditure amid strong manufacturing activity.

RBI MPC Meeting

The RBI MPC meeting started from 6 August 2024. The decisions of this meeting were announced by RBI Governor Shaktikanta Das on 8 August. Announcing the decisions of the MPC meeting, Shaktikanta Das said that GDP growth is estimated to be 7.2 percent for the current financial year.

However, RBI has reduced the GDP growth for the first quarter to 7.1 percent. At the same time, it has maintained it at 7.2 percent for Q2 and 7.3 percent for Q3. Similarly, it has predicted 7.2 percent economic growth for the fourth quarter.

Das said that the inflation rate is expected to be 5.1 percent in the financial year 2024-25. Let us tell you that this time also in the MPC meeting, it has been decided to keep the repo rate stable at 6.5 percent.