News Brief
'Outlook For Indian Economy Appears Bright', Says Finance Ministry Report, Expects 7 Per GDP Growth In FY25
The Ministry of Finance
The Finance Ministry has expressed optimism about the Indian economic prospects in the upcoming financial year 2024-25, citing factors such as a good Rabi harvest, sustained manufacturing profitability, and resilience in services.
According to the ministry's monthly economic review for January, the Indian economy is estimated to grow at 7.3 per cent in the current financial year, marking the third consecutive year of GDP growth exceeding 7 per cent.
"Overall, the outlook for the Indian economy appears bright. RBI has forecasted India’s real GDP to grow at 7 per cent in FY25, with risks evenly balanced," the Finance Ministry report said.
The Finance Ministry has attributed this resilience to sustained growth amidst ongoing geopolitical challenges.
The report also highlights the measures announced in the Interim Union Budget FY25 as pivotal in supporting India’s growth trajectory.
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It outlines several tailwinds for FY25, including prospects of healthy Rabi harvesting, sustained manufacturing profitability, and an upturn in private capex cycle.
Improved business sentiments, healthy balance sheets of banks and corporates, along with government thrust on capital expenditure, are expected to further boost economic activity, the report said.
However, the ministry cautioned about potential headwinds from geopolitical tensions, volatility in international financial markets, and geoeconomic fragmentation.
Regarding inflation, the ministry noted a moderation in January 2024, driven by a fall in food and core inflation.
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