SBI Revises India’s GDP Growth Projection to 6.3% for FY25.
Economy Business
On January 7, 2025, the State Bank of India (SBI) released its latest Ecowrap Research Report, revising India's GDP growth forecast to 6.3% for FY25, slightly below the National Statistics Office (NSO)’s estimate of 6.4%.
- The report identified challenges such as a slowdown in lending, manufacturing, and the impact of a high base effect from the previous year as factors influencing the downward revision.
- It also noted reduced total demand during the fiscal year, aligning with the First Advance Estimates (FAE) for GDP released by NSO in January 2025.
- The report highlighted that Government Consumption is projected to grow at 8.5% in nominal terms and 4.1% in real terms, providing a modest boost to the economy.
Main Point :- (i) The industry segment is projected to grow at 6.2% in FY25, down from 9.5% in FY24, while the services sector is expected to see a slight increase to 7.2% in FY25 from 7.6% in FY24, highlighting a mixed sectoral performance and the need for targeted policy interventions.
(ii) SBI's report highlighted that private consumption has emerged as a key driver of economic growth, with an estimated real growth rate of 7.3% in FY25, up from 4.0% in FY24, primarily driven by strong agricultural growth and lower food inflation. The per capita Private Final Consumption Expenditure (PFCE) registered a growth of 6.3%, exceeding the per capita GDP growth of 5.3%.
(iii) The report showed that as of December 31, 2024, All Scheduled Commercial Banks(ASCBs) incremental credit slowed to Rs 11.5 lakh crore, Year to Date (YTD) 7.0%, compared to growth of Rs 21.0 lakh crore (YTD 15.4%) in FY24.
About SBI
Chairman : Challa Sreenivasulu Setty
Headquarter : Mumbai
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