India's GDP Likely to Grow at 7.2% in FY25: RBI Deputy Governor

New York: India's GDP growth is projected at 7.2 per cent in 2024-25, around 7 per cent in next fiscal, and after that, re is a strong likelihood that growth will revert to 8 per cent trend, said Reserve Bank of India deputy governor Michael Debabrata Patra. He was speaking at New York Fed Central Banking Seminar organised by Federal Reserve Bank here on Monday.

"...I do believe with all strength of my conviction that India's time has come," he said, and highlighted country hes into its future with youngest population in world with a median age of 28 years.

Unlike in many parts of world, working age population is growing -- every sixth working age person is an Indian.

Patra said that since independence in 1947, India's growth path has undergone three structural shifts with trend growth, having risen to 7 per cent during 2002-2019.

After severe contraction during pandemic, a new growth trajectory averaging 8 per cent seems to be forming during 2021-24, he said.

India is now regarded as fastest growing major economy in world.

Alrey fifth largest economy in terms of market exchange rates, it is poised to become third largest economy by 2030, senior RBI official said and ded country is alrey third largest economy in terms of purchasing power parity.

"Our projections show that India's real GDP growth will be 7.2 per cent in 2024-25 and around 7.0 per cent in 2025-26 in a cyclical correction to rebound from pandemic. reafter, re is a strong likelihood that India's growth will revert to 8 per cent trend," Patra said.

On inflation, he said it is projected to average 4.5 per cent in 2024-25 and 4.1 per cent in 2025-26.

Consumer Price Index (CPI) based inflation fell below target during July-August but rose to 5.5 per cent in September on back of a pickup in price momentum in some food items and verse base effects inherent in year-on-year measurement.

"Our projection indicates that se price pressures will persist in October and November before heline inflation realigns with target from December 2024 and remains aligned in 2025-26," deputy governor said.

He also emphasised that India is emerging as a world leer in leveraging digital technologies for transformative change.