The Indian economy is likely to post a 7% growth in the current fiscal year that started in April 2024, according to the country’s central bank Reserve Bank of India (RBI).
In its annual report for the 2023-24 fiscal year released yesterday, RBI stated that India’s real GDP grew by 7.6% in the fiscal (April 2023 to March 2024), and prior to that year, the GDP growth was 7%.  
“The real GDP growth for 2024-25 fiscal year is projected at 7% with risks evenly balanced,” according to the report which came two days prior to the last phase of voting in India’s parliamentary elections on 1 June.
The world’s fifth-largest economy, it said, showed resilience in FY24 despite persistent headwinds.
India’s GDP growth is robust on the back of solid investment demand which is supported by healthy balance sheets of banks and corporates, the government’s focus on capital expenditure and prudent monetary, regulatory and fiscal policies, the RBI report stated.
The Indian economy, the report said, is well-placed to step up growth trajectory over the next decade in an environment of macroeconomic and financial stability. “As inflation eases towards the target, it will spur consumption demand especially in rural areas,” it said. It further said the external sector’s strength and buffers in the form of foreign exchange reserves will insulate India’s domestic economic activity from global spill-overs.