India’s economy to grow in FY ’24/2025

India’s economy is projected to grow by around 6.5 per cent in fiscal year 2024/25, near the lower end of its 6.5-7 per cent target, as global uncertainties weigh on the outlook, the finance ministry stated in its November report.

Growth prospects for October-December remain positive, driven by robust rural demand and strengthening urban consumption, despite a slower-than-expected 6.3 per cent growth in July-September, hindered by weaker manufacturing and consumption.

The ministry expects stronger economic momentum in the second half of the fiscal year, though demand has been impacted by the central bank’s monetary policy stance, which has kept interest rates steady across 11 consecutive meetings despite inflationary pressures.

For fiscal 2025/26, risks such as uncertain global trade growth and a stronger US dollar could challenge growth. However, the report highlighted India’s resilient domestic fundamentals as a bright spot for future expansion.

Attribution: Reuters

Subediting: M. S. Salama