NITI Aayog's Virmani Revises FY25 GDP Growth Projection For India
ECONOMY & POLICY

NITI Aayog's Virmani Revises FY25 GDP Growth Projection For India

NITI Aayog member and renowned economist Arvind Virmani said he has revised his GDP growth projection for India on the lower side for FY25 due to rising global uncertainties and risks, particularly from the United States and China. Virmani, who had earlier predicted a GDP growth in the range of 6.5-7.5 per cent, adjusted the projection to 6.5-7 per cent now with high probability of it being sub-7 per cent, amidst heightened risk aversion stemming from global political and economic challenges. "My focus from the beginning of the year was 7 per cent plus-minus 0.5 per cent, which means 6.5-7.5 per cent. But now I am revising it to 6.5-7 per cent. The political uncertainties created by the US elections is much higher than I had anticipated," Virmani said. "The US election uncertainty has a domino effect, influencing Europe, China, and other regions, indirectly impacting India," he said on the sidelines of an interactive session with MCCI. He highlighted the significant slowdown in China's economy, noting its 'irrational' capacity-building approach despite reduced capacity utilisation. "China’s overcapacity, coupled with its slowing economy, has exacerbated global uncertainty and risk aversion, and may further affect India’s growth trajectory," he added. Despite these challenges, Virmani remained optimistic about India's long-term prospects. "If India sustains 6 per cent growth for the next 25 years, it is well-placed to become an upper-middle-income or even a high-income country, coming close to China," he said. Addressing the uneven distribution of investments across various states, Virmani said the NITI Aayog is working on benchmarks and indices to help states improve their investment climate, including Foreign Direct Investment (FDI) inflows. "Currently, only a few states attract the majority of investments. The Modi government recognises the crucial role of states and aims to provide actionable insights for others to catch up," he said. International institutions estimate GDP growth of India at 6.4-6.5 per cent.

NITI Aayog member and renowned economist Arvind Virmani said he has revised his GDP growth projection for India on the lower side for FY25 due to rising global uncertainties and risks, particularly from the United States and China. Virmani, who had earlier predicted a GDP growth in the range of 6.5-7.5 per cent, adjusted the projection to 6.5-7 per cent now with high probability of it being sub-7 per cent, amidst heightened risk aversion stemming from global political and economic challenges. My focus from the beginning of the year was 7 per cent plus-minus 0.5 per cent, which means 6.5-7.5 per cent. But now I am revising it to 6.5-7 per cent. The political uncertainties created by the US elections is much higher than I had anticipated, Virmani said. The US election uncertainty has a domino effect, influencing Europe, China, and other regions, indirectly impacting India, he said on the sidelines of an interactive session with MCCI. He highlighted the significant slowdown in China's economy, noting its 'irrational' capacity-building approach despite reduced capacity utilisation. China’s overcapacity, coupled with its slowing economy, has exacerbated global uncertainty and risk aversion, and may further affect India’s growth trajectory, he added. Despite these challenges, Virmani remained optimistic about India's long-term prospects. If India sustains 6 per cent growth for the next 25 years, it is well-placed to become an upper-middle-income or even a high-income country, coming close to China, he said. Addressing the uneven distribution of investments across various states, Virmani said the NITI Aayog is working on benchmarks and indices to help states improve their investment climate, including Foreign Direct Investment (FDI) inflows. Currently, only a few states attract the majority of investments. The Modi government recognises the crucial role of states and aims to provide actionable insights for others to catch up, he said. International institutions estimate GDP growth of India at 6.4-6.5 per cent.

Next Story
Real Estate

Google India’s New Campus

India continues to cement its position as a global digital powerhouse – and Google’s latest milestone reinforces this trajectory with the inauguration of Ananta, one of its largest offices worldwide. CW explores the design, sustainability and construction aspects of this landmark campus in Bengaluru.Significance of AnantaLocated in Mahadevapura, Bengaluru, Ananta spans 1.6 million sq ft and is situated within Bagmane Tech Park. Named after the Sanskrit word for ‘infinite’, this state-of-the-art, 11-storey facility is Google’s fourth office in Bengaluru. It is designed to foster colla..

Next Story
Infrastructure Urban

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Next Story
Infrastructure Urban

Ministry of Cooperation Inaugurates NCOL Organic Packaging Facility

The Ministry of Cooperation inaugurated a new state-of-the-art packaging facility of National Cooperative Organics Limited (NCOL) in Noida, Uttar Pradesh. The centre is dedicated to packaging pulses and organic products while maintaining high hygiene and quality standards. Dr Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, called the facility a major milestone in promoting the Bharat Organics brand. The initiative aims to empower farmers and expand access to certified organic produce across India, while offering premium prices to farmers and affordable organic food to consumers. Un..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?