Archive · 23 May 2025
India's GDP Growth Projected to Rebound to 6.8%
Experts at Deutsche Bank think India's economy will grow faster in the first three months of 2025.
They predict a 6.8% growth rate, a recovery from previous quarters.
Lower government subsidies are helping.
Other positive factors include strong industrial production and bank credit, plus lower inflation.
Deutsche Bank projects India's real GDP to rebound to 6.8% in the January-March 2025 quarter.
This forecast follows 5.6% growth in the July-September 2024 quarter and 6.2% in October-December.
Real GVA is expected to grow at 6.5% in Q4 FY25, slightly lower than GDP growth.
A drop in subsidy disbursements is expected to boost net tax collections and lift GDP.
High-frequency indicators and softer inflation support the positive outlook.
- Who
- Kaushik Das (Deutsche Bank chief economist)
- What
- Rebound in India's GDP growth
- When
- January-March 2025 quarter
- Where
- India
- Why
- Due to stronger economic indicators, and a drop in subsidy disbursements boosting net tax collections.
- GDP growth forecast (Jan-Mar 2025)
- 6.8%
- GVA growth forecast (Q4 FY25)
- 6.5%
- CPI inflation (Q4)
- 3.7%
- WPI inflation (Q4)
- 2.3%
- Nominal GDP growth (Q4)
- 10%
Sources
India's growth to surge by 0.2% to 6.4% while China's projection reduced by 0.3%: Fitch Ratings
India’s Q4 GDP may grow at 7.2% despite muted economic activity
India's private sector growth touches 13-month high in May, buoyed by services: HSBC
Fitch upgrades India's medium-term economic growth outlook to 6.4%, Chinese forecast trimmed
India's Jan-March GDP growth likely to rebound to 6.8%, says expert
