India's Q2 GDP growth may slow down to 6.5%; FY25 growth seen closer to 7%: SBI

India’s GDP growth for Q2 FY25 is projected to slow down to 6.5%, with full-year growth expected to be closer to 7%. This forecast reflects a moderation in economic activity but remains robust compared to global standards. The slowdown is attributed to several factors, including weaker external demand, tighter financial conditions, and the impact of recent policy measures. Despite the deceleration, India’s economic outlook remains positive, driven by strong domestic demand and investment. The government continues to implement structural reforms to boost productivity and enhance the business environment. Key sectors such as manufacturing, services, and agriculture are expected to contribute to growth. The Reserve Bank of India (RBI) is also expected to maintain a supportive monetary policy stance to foster economic stability. Overall, while growth may slow in the short term, India’s economy is poised for sustained expansion, supported by favorable demographics and ongoing policy initiatives.