Mumbai. India's economic system depends on the country's GDP, where continuous changes are seen in it. According to recent reports, India's real GDP growth is expected to decline to 6.5 percent in the July-September quarter due to heavy rains and weak corporate performance. Domestic rating agency ICRA, however, has maintained its growth forecast for the entire financial year at seven percent amid expectations of an uptick in economic activity in the second half of the financial year 2024-25 (October 2024-March 2025). These estimates and comments come at a time when there are concerns of a slowdown in growth due to a number of factors such as weak urban demand.
Reserve Bank said on economic growth rate
Let us tell you that the Reserve Bank of India has estimated the economic growth rate for the current financial year 2024-25 to be 7.2 percent, which is less than 8.2 percent for 2023-24. Official data on economic activity for the second quarter is expected to be released on November 30. GDP growth in the first quarter (April-June) was 6.7 percent. Icra said the decline in the second quarter would be due to factors such as heavy rains and weak corporate performance. He said, “Although there are positive trends due to government expenditure and Kharif sowing, there is a possibility of a slowdown in the industrial sector, especially mining and power.”
Speed seen in sowing of Kharif crops
Let us tell you that Aditi Nair, Chief Economist of the rating agency, said, “The second quarter of the financial year 2024-25 saw a good growth in the sowing of major Kharif crops along with an increase in capital expenditure after the general elections. “Many areas faced adverse conditions due to heavy rainfall, which affected mining activity, power demand and retail customer base and also reduced merchandise exports.” He said that the benefits of good monsoon will be available further and rural demand is likely to improve continuously due to increase in Kharif production and refilling of reservoirs. “We are also keeping an eye on the impact of the slowdown in personal credit growth on private consumption as well as the impact of geopolitical developments on commodity prices and external demand,” the chief economist said. Language Nebula Manisha
Comments are closed.