RBI Monetary Policy Committee projects India's real GDP growth at 7% for FY25

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has kept its growth projection for India's GDP at 7% for the 2024-25 financial year, Governor Shaktikanta Das announced on Thursday, February 8. For the first three-quarters of FY25, the GDP growth rates are estimated at 7.2%, 6.8%, and 7%.

"This is the 3rd successive year of growth above 7%, FY24 momentum is expected to continue in FY25," Das said. The governor stressed that the risks to growth are evenly balanced. The central bank governor said that private investments are picking up, and rural demand is gathering pace.

The consumer price index inflation target of 4% is yet to be reached, Das stated, noting that the monetary policy committee has to remain vigilant to ensure a successful last-mile navigation of disinflation. "Stable and low inflation at 4% will provide the bedrock of economic growth," the Governor said.