SBI, India’s biggest bank, has lowered its prediction for the country’s economic growth in 2025 to 6.3%. This is less than what the Reserve Bank of India (RBI) expects, which is 6.6%. The latest economic report from SBI shows that the Indian economy isn’t growing as quickly as needed, especially after the RBI reduced its own forecast from 7.2% to 6.6%.
Key points from the report include:
– In the first half of 2025, growth was only about 6.05%.
– Although some signs show that the economy is improving, like during festive seasons, the overall growth in the second quarter was just 5.4%, the lowest in almost two years.
– Rising prices, especially for food, are also causing problems.
SBI pointed out that these kinds of downward revisions of growth projections have happened before. In past years, similar downgrades occurred due to various challenges.
The decrease in growth numbers is worrying for many, especially as consumers are buying less. Families are spending less money on both essential goods and fancy items like cars because of falling incomes and high prices.
This slower growth is not just a problem for individuals but for the whole country too. India’s goal of becoming the third-largest economy by 2030 looks harder to achieve. A weaker economy means fewer new jobs and challenges in improving living standards for everyone.
The global economy is also facing troubles, making it even harder for India. Tightened financial conditions in other countries and global uncertainties are affecting investor confidence and how much other countries want to buy from India.
SBI advises policymakers to keep a close watch on economic changes. The RBI plans to help by lowering the cash reserve ratio (CRR), which will give banks more money to lend. This could help support the economy, but it’s essential to fix deeper issues to ensure long-term growth
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