Economists foresee a deceleration in the growth of factory output, indicated by the Index of Industrial Production (IIP), with a projected decrease to 4.7% in the fiscal year 2025 from the estimated 6.1% in FY24. This anticipated slowdown is attributed to the statistical impact of a high base year and the diminishing pent-up demand. The expectations of a lower IIP growth rate also indicate a potential drop in GDP growth for FY25, possibly falling below the National Statistical Office’s projection of 7.5% growth for FY24.
Analysis suggests that the Reserve Bank of India forecasts GDP growth at 7% for FY25, though some economists have placed estimates at a more conservative 6.5-6.7%. As per reports, the Centre for Monitoring Indian Economy predicts a slowdown in growth across the mining & quarrying, manufacturing, and electricity sectors compared to FY24 figures. With varied projections and factors at play, the economic landscape for the upcoming fiscal year remains uncertain.
