GDP May Grow 6.8% In FY25

New Delhi: Indian economy is expected to record a growth of 6.8 per cent in 2024 and will clock an expansion of 6.3 per cent next year. This comes on the back of continued strong public and private investment and consumption as well as rising exports of services, according to the latest UNCTAD (UN Trade and Development) report.

Despite the increased exports of services and certain goods, such as chemicals and pharmaceuticals, the structural current account deficit (CAD) in India will persist, owing to relatively weaker external demand and high fossil energy import bills, the report observes.

As the world’s most populous country and third-largest energy consumer, India is simultaneously expanding its domestic non-fossil and fossil fuel energy supply to support growing economic output, the report adds.

It also points out that as inflation is expected to decline to four per cent by the end of the year, the Reserve Bank of India (RBI) may initiate monetary easing and trim its policy rate, it noted. UNCTAD had a projected growth rate of 7.7 per cent for India last year.