SBI Report reveals India’s GDP to Drop below 6.5% in FY25

Current Context: The State Bank of India (SBI) released the report on December 7, 2024. The report, titled "Economic Review and Projections for FY 2025,".

• Key Points of the Report:
• GDP Growth Forecast:
• The report forecasts that India's GDP growth will drop below 6.5% for the fiscal year 2025.
• This is a downward revision from the Reserve Bank of India's (RBI) projection of 6.6%.
• Reasons for the Slowdown:
• The primary reason cited for the lower growth forecast is a slowdown in the industrial sector.
• Factors contributing to this slowdown include decreased industrial output, lower investment levels, and supply chain disruptions.
• Impact on the Economy:
• The report highlights potential impacts on employment, consumer spending, and overall economic stability.
• A slower GDP growth rate may lead to reduced economic opportunities and challenges in achieving fiscal targets.

Question:

1 The SBI report forecasts India's GDP growth for the fiscal year 2025 to drop below:

• A) 6.0%
• B) 6.5%
• C) 7.0%
• D) 7.5%

Answer: B) The report forecasts India's GDP growth to drop below 6.5% for the fiscal year 2025, indicating a downward revision from earlier projections.