India's projected GDP growth for Q1 FY25 in 7-7.1% range: SBI ECOWRAP

However, the gross value added (GVA) will be below 7 per cent and may come in the range of 6.7-6.8 per cent, SBI said in the August 26 issue of its newsletter ECOWRAP.

The global economic growth outlook remains uncertain, but softening inflation has made space for monetary policy easing.

The indicators of corporate performance in Q1 FY25 point to moderation in sales growth of manufacturing companies in both nominal and real terms, although excluding the petroleum sector, a better outturn emerges.

Staff costs inched up in the manufacturing sector, but debt servicing capability measured in terms of the interest coverage ratio remained stable. Against this backdrop, profit margins have declined and this will pull down manufacturing growth, the newsletter noted.

The Indian corporate sector, with around 4,000 listed entities, reported both top line and bottom-line growth of around 9 per cent year on year (YoY) in Q1 FY25.

Corporate GVA grew by around 10.9 per cent in Q1 FY25 compared to 17 per cent in Q4 FY24 and 26 per cent in Q3 FY24.

ALCHEMPro News Desk (DS)