According to the SBI report, India's GDP is projected to grow at 6.5% in Q2FY25.

Economy Business

According to the State Bank of India (SBI)'s latest report, India's Gross Domestic Product (GDP) is expected to grow around 6.5% in the 2nd Quarter (Q2: July-September) of Financial Year 2024-25 (FY25).


      - This projection by SBI is 50 basis points (bps) lower than the Reserve Bank of India (RBI)'s estimate of 7% for Q2FY25.

      - The report further estimates that India's GDP growth in the 3rd Quarter (Q3) and 4th Quarter (Q4) of FY25 will be closer to 7%.

      - The percentage of bullish indicators declined to 69% in Q2FY25 from 80% in Q2FY24 and 78% in Q1FY25.

Main Points:-   (i) The report underscored the recent growth in rural demand, juxtaposed against the somewhat declining urban demand, with 85% of rural indicators showing acceleration compared to 73% of urban indicators (September 2024).

      (ii) However, the report has warned against any policy decisions that could create short-term fiscal pressures. It stated that initiatives like loan waivers and universal crop price guarantees are "unscientific" and could lead to long-term economic challenges.


About State Bank of India (SBI)

Chairman: Challa Sreenivasulu (C.S.) Setty
Headquarters: Mumbai
          ____________________________