The Reserve Bank has raised its estimate of India's economic growth to 7.2% in 2024-25.

GDP growth: After the World Bank, the Reserve Bank of India (RBI) has also increased India's economic growth rate estimate. Speaking at FIBAC-2024 at the Indian Bankers Association (IBA) annual banking conference in Mumbai, RBI Governor Shaktikanta Das said the central bank has raised the country's economic growth rate estimate to 7.2% for the current financial year 2024-25. He said the International Monetary Fund (IMF) has also estimated India's growth rate at 7%. Earlier, the World Bank had also kept the growth rate at 7% in its estimate. As far as the rate of economic growth is concerned, the RBI's assumptions and projections seem to overlap with the estimates of global agencies. RBI Governor Shaktikanta Das said the data showed that the fundamentals of growth drivers are gaining momentum and India's growth story remains the same, while growth has been hit by reduced government spending in the general elections. However, he said that due to the general elections in the country, the expenditure of the central and state governments has been reduced and this has an impact on economic growth. He said that the expenditure of the central and state governments is likely to increase as per the respective budget estimates after the general elections. #WATCH | MUMBAI: Speaking at IBA's annual banking conference FIBAC 2024, RBI Governor Shaktikanta Das said: "For the current financial year, RBI has projected a growth rate of 7.2%. IMF has also projected India's growth potential. They actually revised their growth… pic.twitter.com/TB85l2NKPx— ANI (@ANI) September 5, 2024 RBI's GDP growth forecast not inconsistent RBI's 7.2% GDP growth forecast for FY 2024-25 Structural factors play a major role in macroeconomic outcomes Since, it doesn't seem random. Now is the time for the corporate sector to step up investment in a big way. There are clear signs of private investment. Reforms like GST and IPC have yielded long-term positive results, he said. Reforms are needed in land, labor and agricultural markets. Also Read: People of India Don't Know About 'Arbitrage Funds' If They Know They Will Become Billionaires, Says RBI Governor Many MSMEs (Micro, Small and Medium Units) remain small in scale and unable to expand due to various reasons. Banks should develop products suitable for MSMEs. To ensure prudent lending, only regulated institutions will be allowed on the ULI platform, he said. ULI is not a 'club' of a few select companies. Develop specific products to support women-led businesses without diluting risk assessment standards. Also Read: Land on Yamuna Expressway in Delhi-NCR rises 450%, India's economic growth rate to 7.2% in 2024-25 from flat budget, RBI raises estimate Prabhat Khabar.