• Power Corridors Magazines
  • Advertise with us
Saturday, June 21, 2025
  • Login
Power Corridors
  • News
  • Politics
  • Business
    • Technology
  • Appointments/Transfers
  • Automobile
  • Entertainment
  • Sports
    • IPL 2024
  • Event
  • World
No Result
View All Result
  • News
  • Politics
  • Business
    • Technology
  • Appointments/Transfers
  • Automobile
  • Entertainment
  • Sports
    • IPL 2024
  • Event
  • World
No Result
View All Result
Power Corridors
  • News
  • Politics
  • Business
  • Appointments/Transfers
  • Automobile
  • Entertainment
  • Sports
  • Event
  • World
Home Business

RBI Slashes FY25 Growth Forecast to 6.6%

The RBI's Monetary Policy Committee has decided to keep the repo rate unchanged, citing inflationary pressures and global uncertainties. The GDP growth forecast for FY25 has been revised downward to 6.6%.

Navin Upadhyay by Navin Upadhyay
6 December 2024
in Business
8
RBI Slashes FY25 Growth Forecast to 6.6%
9
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

Governor Shaktikanta Das emphasizes the need for price stability, with inflationary risks overshadowing growth concerns. The central bank stays vigilant as it revises GDP growth projections for FY25.

BY PC Bureau

The Reserve Bank of India (RBI)) has decided to maintain the repo rate at 6.5% and downgraded the GDP growth forecast from 7.2% to 6.6%.  The decision, taken with a 4:2 majority, reflects the central bank’s cautious stance amid persistent inflationary pressures and global uncertainties.

RBI Governor Shaktikanta Das emphasized that high inflation continues to pose a substantial challenge, eroding disposable incomes and dampening private consumption, which adversely impacts econD

Das said that  that the Monetary Policy Committee (MPC) acknowledged the GDP growth data for the second quarter of FY2025 and  revised the full-year real GDP growth forecast significantly downward, from 7.2% to 6.6%.

“High inflation reduces disposable income and affects private consumption, negatively influencing real GDP growth. Additionally, adverse weather events, geopolitical uncertainties, and financial market volatility pose upside risks to inflation. The MPC remains committed to ensuring durable price stability as a foundation for sustained growth,” Das said.

The six-member MPC, chaired by Governor Das, began its bi-monthly deliberations on Wednesday, marking his final policy meeting as chairperson before his tenure concludes on December 10.

Balancing Inflation and Growth

Das highlighted that the RBI’s anti-inflationary measures have been instrumental in achieving significant progress toward disinflation, despite recent upticks. “Headline inflation is expected to realign with the target as food price shocks ease. However, prudence demands a status quo in monetary policy to monitor evolving data and preserve the gains made so far,” he added.

The central bank also noted that agriculture and industrial activity are expected to provide a positive impetus to growth. A healthy Kharif crop, better reservoir levels, and improved rabi sowing have bolstered agricultural growth, while industrial sectors such as mining, electricity, cement, and steel are recovering from monsoon-related disruptions.

Sectoral Outlook

  • Industrial Recovery: Industrial activity is normalizing, supported by government capital expenditure and improved conditions post-monsoon. Mining and electricity sectors are rebounding after being key drags on Q2 GDP.
  • Manufacturing and Services: The Purchasing Managers Index (PMI) for manufacturing stood at a robust 56.5 in November, while services PMI remained strong at 58.4, indicating sustained expansion.
  • External Trade: Merchandise exports grew by 17.2% in October, while services exports showed a healthy increase of 22.3%.
  • Demand Trends: Rural demand is on an upward trend, whereas urban demand is moderating due to a high base. Government consumption and investment activity are showing improvement.

Das reiterated that the evolving economic landscape requires vigilance. “We must remain sensitive to the complexities and ramifications of the current situation. Maintaining the status quo in monetary policy is both prudent and essential at this juncture,” he concluded.

The RBI’s focus remains on striking a delicate balance between curbing inflation and supporting economic recovery, ensuring a sustainable path forward for the Indian economy.

 

Tags: RBI
Plugin Install : Subscribe Push Notification need OneSignal plugin to be installed.
Previous Post

12 days and counting: No trace of the missing Meitei man

Next Post

Pink Ball vs Red Ball: How Pink Ball is Different in Test Cricket?

Related Posts

Nifty 50 Eyes 25,000 Despite Israel-Iran War: Has Indian Market Already Priced in Geopolitical Risk?
Business

Nifty 50 Eyes 25,000 Despite Israel-Iran War: Has Indian Market Already Priced in Geopolitical Risk?

18 June 2025
Israel‑Iran War Sparks Rally in Indian Defence Stocks – Should You Own Mazagon Dock, GRSE, Bharat Dynamics?
Business

Israel‑Iran War Sparks Rally in Indian Defence Stocks – Should You Own Mazagon Dock, GRSE, Bharat Dynamics?

17 June 2025
Kashmiri Cherries Go Global: First Commercial Consignment Flagged Off to Saudi Arabia and UAE
Business

Kashmiri Cherries Go Global: First Commercial Consignment Flagged Off to Saudi Arabia and UAE

16 June 2025
Tribal Up in Arms in Kokrajhar Against Adani Power Project
Business

Tribal Up in Arms in Kokrajhar Against Adani Power Project

15 June 2025
Air India Crash: Boeing Shares Cave in US Pre-market Trading
Business

Air India Crash: Boeing Shares Dive 5% in US Market

12 June 2025
₹3,706 Cr HCL-Foxconn Chip Plant Gets Green Light in Jewar, 2,000 Jobs on the Way!
Business

₹3,706 Cr HCL-Foxconn Chip Plant Gets Green Light in Jewar, 2,000 Jobs on the Way!

14 May 2025
Next Post
Pink Ball vs Red Ball: How Pink Ball is Different in Test Cricket?

Pink Ball vs Red Ball: How Pink Ball is Different in Test Cricket?

The grand new stylish iQOO 13: A quick review

The grand new stylish iQOO 13: A quick review

Cash chaos in RS: Should MPs be frisked?

Cash chaos in RS: Should MPs be frisked?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POWER CORRIDORS

Former Vice President Venkaiah Naidu commended Power Corridors as a commendable news magazine, affirming that it not only upholds Media Dharma but also fulfills its societal obligations. Power Corridors, as its name implies, delves into realpolitik—examining the essence of influential circles, unraveling the intricacies of political maneuvers, and exploring the pulse of the state’s affairs. However, it transcends mere power dynamics, encompassing a broader spectrum of issues beyond the confines of Delhi’s elite circles.

For PC, which is published by the Interactive Forum on Indian Economy, not only highlights the issues of the day but also throws up what ought to be the subjects that the country should be debating about. It reports about the plans, strategies, and agendas of politicians and others; it also sets the agenda for the nation.

Browse by Category

  • Appointments/Transfers
  • Automobile
  • Aviation
  • Blog
  • Business
  • Crime
  • Education
  • Entertainment
  • Event
  • GMF
  • HEALTH
  • IFIE
  • IPL 2024
  • Law
  • Motorsports
  • National
  • News
  • Politics
  • Science
  • Space
  • Sports
  • Technology
  • Weather
  • WEIGHT LOSS
  • World

Recent News

Hoikholhing Haokip

As Army Accepts Blame, Manipur Police Exposed Over Crossfire Claim

21 June 2025
Indian-American Prof links AI Crash to Reservation; Ignites Debate

DGCA issues show-cause notice to Air India for violating Pilot Duty Norms

21 June 2025
  • About
  • Advertise With Us
  • Privacy & Policy
  • Contact Us

© 2023 Power Corridors

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • Login
  • News
  • National
  • Politics
  • Business
  • World
  • Entertainment
  • Crime
  • Law
  • Sports
  • Contact Us

© 2023 Power Corridors