India's economic growth will continue to hold steady in FY25 despite global uncertainties, with a projected GDP at 6.7 per cent in FY26, a report showed on Friday.
CareEdge Ratings said that it expects Indian government to continue on the path of fiscal consolidation and projects India's GDP growth to remain healthy at 6.5 per cent in FY25 and 6.7 per cent in FY26.
“We expect to see improvement in private investment in 2025, supported by anticipated monetary policy easing,” said Sachin Gupta, Chief Rating Officer and ED, CareEdge Ratings.
The report said that CPI inflation is expected to moderate in the coming quarters. It expects food inflation to moderate, driven by a strong kharif harvest and favourable conditions for rabi sowing.
The CPI inflation, excluding vegetable inflation, has been below 4 per cent in the last few months. The average CPI inflation is projected at 4.8 per cent in FY25 and 4.5 per cent in FY26.
Core inflation is expected to remain benign, averaging 3.5 per cent in FY25 and 4.3 per cent in FY26. And WPI inflation is anticipated to average 2.5 per cent in FY25 and 3 per cent in FY26.
“We can expect the economic growth in H2 FY25 to rebound, supported by the recovery in consumption and a pick-up in government capex. Healthy agriculture production and robust services sector performance will be supportive of a rebound in GDP,” said Rajani Sinha, Chief Economist, CareEdge Ratings.
As far as government finances are concerned, net revenue collection will be aligned with the budgeted target.
The report expects RBI to cut policy interest rate by 50-75 bps in 2025, as food inflation moderates.
Overall, the report expected India’s current account deficit (CAD) to remain manageable at 0.9 per cent of GDP in FY25.
On the external front, it projected merchandise exports to rise by 2.5 per cent, while, services exports projected to record a strong growth of 13 per cent in FY25.
‘Pahalgam incident deeply disturbing & tragic’: Former Pakistan PM Imran Khan
Former Pakistan Prime Minister Imran Khan on Tuesday termed the Pahalgam terror attack as disturbing & tragic and also condoled the victims and their families.
Congress finally deletes 'Gayab' post targeting PM Modi after outrage
Under fire from the BJP over its social media post targeting Prime Minister Narendra Modi, Congress finally, on Tuesday, took down the controversial post.
Guterres calls EAM Jaishankar, Pak PM Sharif; stresses pursuing justice in Pahalgam terror attack
Secretary-General Antonio Guterres stressed the importance of pursuing justice in the Pahalgam terrorist attack while speaking with External Affairs Minister (EAM) S Jaishankar and Pakistan’s Prime Minister Muhammad Shebaz Sharif, his Spokesperson Stephane Dujarric said on Tuesday.
Congress organises ‘Save Constitution’ rallies across NE states
The opposition Congress has been organising ‘Samvidhan Bachao’ (Save Constitution) campaign in the northeastern states. Claiming that the Constitution is in danger under the BJP-led Central government, the opposition Congress held a massive rally in Agartala on Tuesday.
RSS chief Bhagwat meets PM Modi after security huddle: Signs of a hard-hitting response in the works
In a significant political development, RSS chief Mohan Bhagwat met Prime Minister Narendra Modi at his official residence at 7, Lok Kalyan Marg on Tuesday evening.
What PM Modi's free hand to armed forces against terror means for cross-border action?
Prime Minister Narendra Modi’s unambiguous message during a high-level security meeting - ‘India is determined to deliver a crushing blow to terrorism’ - marks more than just a strong statement of resolve.
Justice BR Gavai appointed as next Chief Justice of India
Justice Gavai was elevated as a Judge of the Supreme Court on May 29, 2019. Appointed as Additional Judge of the Bombay High Court in November 2003, he became a permanent Judge in November 2005.
Three more Bangladeshi nationals held in Tripura
The Tripura Frontier of the Border Security Force (BSF) on Tuesday apprehended three Bangladeshi nationals, including a woman, for illegally entering India, officials said.