The Reserve Bank on Friday retained the GDP growth forecast of 7 per cent for the 2024-25 financial year, lower than the 7.6 per cent expansion estimated for FY24.

In its February monetary policy, the RBI had projected the GDP growth rate of 7 per cent for the financial year beginning April 1.

Announcing the current fiscal's first bi-monthly monetary policy, RBI Governor Shaktikanta Das said the rural demand is gathering pace, and sustained growth in manufacturing sector should boost private investment.

However, there are headwinds from geopolitical tensions and disruptions in the global trade route.

Das further said the country's real GDP is expected to grow 7 per cent in 2024-25, with June quarter growth at 7 per cent, and September quarter at 6.9 per cent. In the third and fourth quarter the growth is expected to be 7 per cent each.

Earlier this week, Prime Minister Narendra Modi said the Reserve Bank has to accord "top-most priority" to growth and at the same time focus on trust and stability.