Signs of hope in GDP data: Will RBI's 7.2% FY25 growth projection be met?

A continued growth momentum being seen will allow the central bank to focus on inflation and wait till it's durably aligned to the target of 4 per cent

The National Statistical Office has released its quarterly estimates of gross domestic product (GDP). The period April-June 2024 saw GDP increase by 6.7 per cent in real terms year-on-year (Y-o-Y). This is being seen as deceleration, given that the previous quarter recorded 7.8 per cent Y-o-Y GDP growth and the equivalent for the same quarter of 2023-24 was as high as 8.2 per cent. It is also somewhat lower than estimates; the Reserve Bank of India (RBI), for example, had predicted growth would be around 7.1 per cent in the same period. Questions will naturally be asked