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India's trend GDP growth to move closer to 6.5-7 pc in FY25: Crisil

December 16, 2024 01:46 PM

New Delhi, Dec 16 || The main macro drivers remain healthy and India's GDP growth is likely to move closer to the trend growth of 6.5-7 per cent this fiscal, a Crisil Insight report said on Monday.

Trend GDP growth is the average sustainable rate of economic growth over time.

Private consumption growth in the country has fared better than last year in the first half of the current fiscal (FY25).

"While investment growth has moderated relative to last year, its share of GDP remains higher than the pre-pandemic decade," the report mentioned.

Technical factors contributed to an above-trend GDP growth last year. They are expected to have a moderating effect on GDP growth this current fiscal as they normalise.

"GDP growth had averaged 6.6 per cent in the pre-pandemic decade. This fiscal is likely to see GDP growth move closer to trend growth of 6.5-7 per cent," according to the report.

 

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