India GDP : Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra has said that India's GDP (gross domestic product) growth rate is estimated to be 7.2 percent in 2024-25 and around seven percent in the next financial year. After that, there is a strong possibility that the growth rate will return to the trend of eight percent.

"...I believe with full confidence that India's time has come. The country is moving towards its future with the youngest population in the world with a median age of 28 years," he said at the New York Fed Central Banking Seminar organized by the Federal Reserve here on Monday. Unlike many countries in the world, the working-age population is increasing. Every sixth person in the working-age category is an Indian.

Patra said that since independence in 1947, India has undergone three structural changes in the trend of economic growth. It has increased to seven percent from 2002 to 2019. He said that economic growth declined drastically during the pandemic. At the same time, the growth rate averaged eight percent from 2021 to 2024.

India is the world's fastest-growing major economy

India is now considered the world's fastest-growing major economy. Patra said India is already the fifth largest economy in exchange rate terms and is moving towards becoming the third largest economy by 2030. At the same time, the country is already the third-largest economy in terms of purchasing power parity.

India's GDP growth rate will be 7.2 percent in 2024-25

He said, "We estimate that India's real GDP growth rate will be 7.2 percent in 2024-25 and around 7.0 percent in 2025-26... After that, there is a strong possibility that India will achieve a growth rate of eight percent." On inflation, Patra said it is estimated to average 4.5 percent in 2024-25 and 4.1 percent in 2025-26.

Inflation remained below the target of four percent during July-August.

Consumer Price Index (CPI) based inflation remained below the target of four percent during July-August, but rose to 5.5 percent in September due to a rise in the price of some food items and an unfavorable comparative base. The Deputy Governor said, "Our estimate suggests that these price pressures will persist in October and November. After that, the gross (headline) inflation will start coming closer to the target by December 2024 and is expected to remain within the target in 2025-26. "He also said that India is emerging as a world leader in leveraging digital technologies to bring about widespread change.