Reserve Bank of India Sees 7% Growth for Indian Economy in Current Fiscal Year

The Reserve Bank of India (RBI) disclosed in its annual report on Thursday that the Indian economy is forecasted to grow by 7 percent in the ongoing fiscal year commencing from April.

The report underscores the robust performance of the Indian economy during the financial year 2023-24, where the real GDP surged to 7.6 percent from the previous year's 7.0 percent. This marks the third consecutive year of achieving growth rates of 7 percent or higher, indicating sustained momentum in the country's economic expansion.

"The real GDP growth for 2024-25 is projected at 7.0 per cent with risks evenly balanced," it said. The economy, it said, showed resilience in FY24 despite persistent headwinds.

However, the report also stated that geopolitical tensions, geoeconomic fragmentation, volatility in global financial markets, fluctuations in international commodity prices, and unpredictable weather patterns present potential challenges to the growth projection, while simultaneously posing risks of inflationary pressures.

The annual report is a statutory report of RBI's central board of directors. The report covers the working and functions of the Reserve Bank of India for the April 2023-March 2024 period.