RBI MPC GDP Growth Update: FY25 forecast cut to 6.6%; Governor says Eco ‘bottomed out’ in Q2

The Reserve Bank of India on Friday, December 6, revised the projections for India’s GDP growth for financial year 2025 down to 6.6% from 7.2% earlier.

The move comes after the India’s GDP growth for the July-September period, fell to a seven-quarter low of 5.4%. This was the lowest growth since the third quarter of financial year 2023.

In his post-policy address, RBI Governor Shaktikanta Das attributed the slowdown in GDP to be much lower than expected but the manufacturing weakness is not broad-based but confined to select sectors. He further added that the slowdown in the domestic economy has “bottomed out” in the September quarter.

After the GDP report, brokerages across the board had downgraded their respective GDP estimates for India for financial year 2025.

Nomura had cut its financial year 2025 GDP growth forecast to 6% from 6.7%, while Goldman Sachs and Emkay had revised their estimates down to 6% from 6.4% and 6.5% respectively earlier.

Governor Das further said that India’s growth outlook remains resilient but warrants monitoring and that the outlook for the global economy is clouded by rising tendencies of protectionism, which can push inflation higher. However, he expects industrial activity to normalise and recover from lower levels and that mining and electricity output is also seen normalising post the monsoon season.

This is a developing story.