SBI Projects Lower GDP Growth 7.1% In Q1 FY25
Date
8/27/2024 2:25:27 PM
(MENAFN- KNN India)
New Delhi, Aug 27 (KNN)
In a recent report, economists at the State bank of India (SBI), the country's largest lender, have projected a decrease in India's economic growth for the first quarter of the fiscal year 2025.
The real GDP growth is estimated to be 7.1 per cent for the April-June period, down from 7.8 per cent in the same quarter of the previous year.
The report, based on a 'Nowcasting Model' utilising 41 lead indicators, suggests that the Gross Value Added (GVA) growth may fall below 7 per cent, to approximately 6.7-6.8 per cent for Q1 FY25.
This projection aligns with other analysts' expectations of a moderation in economic activity during this period.
Several factors contribute to this anticipated slowdown, including softer manufacturing performance, lower government spending due to general elections, declining profit margins in the manufacturing sector, and increased staffing costs for manufacturing companies.
Despite the projected quarterly decline, SBI economists maintain their 7.5 per cent growth estimate for the entire fiscal year 2024-25, which exceeds the Reserve Bank of India's forecast of 7.2 per cent.
The report also highlights global economic uncertainties, including persistent geopolitical tensions and concerns about potential recessions in key economies.
However, it notes a positive development for India with the South West monsoon picking up from early July, potentially benefiting the agricultural sector.
(KNN Bureau)
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