GDP estimated to be 6.6% in 2024-25: Reserve Bank of India

The Reserve Bank of India (RBI) has projected India's GDP rate to be 6.6% for 2024-25. According to the RBI, the country's GDP growth rate is likely to remain stable due to global economic conditions and improvement in domestic demand. Due to this growth, the Indian economy is expected to improve rapidly, which may have a positive impact in the coming financial year.

Meanwhile RBI has been released the 2024 December issue of the Financial Stability Report (FSR). However, this report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC)

Indian financial system and risks to financial stability

It said, "Scheduled Commercial Banks (SCBs) are in good shape due to increased profits, reduction in non-performing assets, adequate capital and cash reserves. Even though return on equity (ROE) and return on assets (ROA) are at a decade high, while the gross non-performing asset (GNPA) ratio has come down.

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Scheduled Commercial Banks (SCBs) are in good shape

Report also said that comprehensive stress testing shows, that most SCBs have adequate excess capital in an adverse situation. The FSR said about the economy that gross domestic product (GDP) growth declined to six percent during the first half of 2024-25 from 8.2 percent and 8.1 percent in the first and second half of 2023-24 respectively.

SCBs have adequate excess capital in an adverse situation

Structural growth drivers remain intact. GDP growth is expected to improve in the third and fourth quarters of 2024-25 due to domestic drivers, mainly public consumption and investment, and strong service exports. Regarding inflation, the report said that food prices are expected to soften going forward due to bumper Kharif and Rabi crops. However, risks remain due to rising trends of extreme weather events.