The country's leading business chamber FICCI has reduced the estimate of India's GDP growth rate for the current financial year 2024-25. In its latest Economic Outlook survey, FICCI has predicted that India's GDP growth rate in the current financial year can be 6.4 percent, which was earlier estimated to be 7 percent. This survey has been prepared on the basis of the response of the country's leading economists representing the industry, banking and financial services sector in december 2024.
There should be measures in the budget to increase income
Amid global economic uncertainties and slowing down of the country's economic growth rate, the budget for the financial year 2025-26 is going to be presented on february 1, 2025. Regarding this, these economists have also expressed their hopes and wishes which can give direction to the government's policy. These economists said that increasing private consumption should be the biggest priority in the budget. For this, there has been a demand to review the tax rates along with the direct and indirect tax structure in the budget so that the disposable income of the people can be increased and consumers can be motivated to spend.
Household budget spoiled due to food inflation
The economists participating in this survey say that India's economic outlook can be expected to be better in 2025, but there is also a need to be cautious due to the external crisis. Due to improvement in the outlook of the agricultural sector, consumption is expected to increase in rural areas, which will see a jump in consumer spending. Food inflation, which has been troubling for the last one year and has spoiled the domestic budget, is expected to soften. After the softening of monetary policy by the RBI, interest rates may come down and due to this consumption will increase.
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