👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

India anticipates 6.5% growth in fiscal year 2024/25 amid global uncertainties

Published 26/12/2024, 12:02
© Reuters.

Investing.com -- India's economic growth is projected to be around 6.5% for the fiscal year 2024/25, according to a government announcement on Thursday. This forecast is closer to the lower end of its earlier projection of 6.5%-7%. The government cited global uncertainties as a potential risk to domestic economic growth.

The finance ministry's monthly economic report for November indicated a bright growth outlook for the period of October to December. This positive outlook is attributed to resilient rural demand and a rise in urban demand during the first two months of the quarter.

However, the economic growth of India experienced a slower pace than anticipated in the period from July to September. This slowdown was mainly due to a weaker expansion in manufacturing and consumption sectors. Despite these challenges, India has maintained its stance that its economy would grow at a pace of 6.5%-7%, which is considered world-beating, even in a challenging environment.

The report also suggested that the growth outlook for the period from October to March is expected to be better than the first six months of the financial year.

The report further stated, "The combination of monetary policy stance and macroprudential measures by the central bank may have contributed to the demand slowdown."

The central bank of India has held its interest rates steady for eleven consecutive policy meetings. This decision has been maintained despite calls for rate cuts to support growth, as the country grapples with high inflation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.