Economists project India’s GDP growth for FY25 to remain subdued at 6.4–6.7%, citing global economic headwinds and domestic challenges. This is a slowdown from earlier robust growth rates but aligns with expectations of moderating momentum in the post-pandemic recovery.
Source:- bbc news
**Key Factors Influencing Growth**
Global economic uncertainties, including inflationary pressures, monetary tightening by major central banks, and geopolitical tensions, are expected to weigh on exports and industrial activity. Domestically, high borrowing costs may dampen private consumption and investment growth, despite strong government infrastructure spending.
**Sectoral Outlook**
Agriculture could see limited growth due to uneven monsoon patterns, while manufacturing and services are likely to face slower demand recovery. However, sectors like digital services, renewable energy, and green initiatives could drive medium-term growth.
**Inflation and Monetary Policy**
Economists expect inflation to remain within the Reserve Bank of India’s (RBI) target range, offering limited scope for monetary easing. However, sustained high crude oil prices and currency volatility pose risks to this outlook.
**Policy Recommendations**
To support growth, experts recommend policy measures focusing on boosting private sector participation, easing credit access, and accelerating reforms in labor and land acquisition. Enhancing export competitiveness and diversifying trade partnerships will also be crucial.
While the projected growth rate of 6.4–6.7% is slower, India is still expected to remain one of the fastest-growing major economies globally. With prudent fiscal and monetary policies, economists believe the country can navigate challenges and lay the foundation for long-term, sustainable growth.
Share your views in the comments
