FICCI forecasts 7.0 per cent annual GDP growth for India in 2024-2025

The Federation of Indian Chambers of Commerce amp Industry FICCI forecasts an annual median GDP growth forecast for the year 202425 at 70 per cent Despite persisting headwinds Indias economic growth remains resilient and the nation remains amongst the fastest growing economies in the world the FICCIs Economic Outlook Survey addedThe industry body said that the median growth forecast for agriculture and allied activities will likely be at 37 per cent for 202425 This marks an improvement of growth of about 14 per cent reported in the year 202324The industry body projects that the ebbing El Nino effect with the expectation of a normal southwest monsoon is likely to bode well for agricultural production Industry and services sector on the other hand are anticipated to grow by 67 per cent and 74 per cent respectively in the current fiscal year the FICCI said in its Economic Outlook SurveyAccording to the survey results median GDP growth is estimated at 68 per cent and 72 per cent in Q1 202425 and Q2 202425 respectivelyFurther the median forecast for CPIbased inflation has been put at 45 per cent for 202324 with a minimum and maximum range of 44 per cent and 50 per cent respectively as per the report While food prices remain sticky with inflation inching up in cereals fruits and milk the survey participants expect an easing of prices in the second quarter with kharif output reaching the marketThe economists who were part of the report opined that a cut in the repo rate is expected only in the latter half of the current fiscal year as RBI is expected to continue with its cautious approach keeping a close watch on the inflation trajectory The policy repo rate is forecasted to moderate to 60 per cent by the end of the fiscal year 202425 March 2025The economists also anticipated continuity in policy in the Union Budget 202425 and further momentum in reforms already being undertaken by the governmentOn the subject of fiscal management and expenditure the participating economists mentioned that the government has done a deft job on the fiscal side It is expected that such prudence will continue as it is important to ensure macroeconomic stabilityAccording to economists the government has an opportunity to leverage additional resources from robust tax collections and the Reserve Bank of Indias dividend transfer This fiscal headroom could be used to increase the spend on social sector schemes especially to support the rural economy On capital expenditure it was pointed out that the target could be increased but not much deviation was expected from the Rs 111 trillion figure that was indicated in the interim budget for FY2025This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever