THE RBI OPTED FOR A JUMBO RATE CUT
- Credit Rating Agency in India
- RBI Monetary Policy
- THE RBI OPTED FOR A JUMBO RATE CUT
The inflation outlook for the year is being revised downwards from the earlier forecast of 4.0 per cent to 3.7 per cent. The economic growth remains lower amidst challenging global situation and heightened uncertainty. According to the provisional estimates released by the National Statistical Office (NSO) on 30th May 2025, real GDP growth in Q4:2024-25 has been positioned at 7.4 per cent as against 6.4 per cent in Q3. On the supply side, real gross value added (GVA) increased by 6.8 per cent in Q4:2024-25. For 2024-25, real GDP growth was placed at 6.5 per cent, while real GVA recorded a growth of 6.4 per cent.
Agriculture prospects remain bright on the back of an above normal southwest monsoon forecast and resilient allied activities. Services sector is expected to maintain its momentum. However, spillovers emanating from protracted geopolitical tensions, and global trade and weather-related uncertainties pose downside risks to growth.