GDP growth rate expected to be 6.5% in the financial year 2025-26!
The indian economy will move forward at a fast pace in the new financial year 2025-26 starting from april 1. In the coming financial year, India's GDP growth rate is estimated to be 6.5 percent in the financial year 2025-26. Also, due to better monsoon, relief from inflation is also expected as the prices of food items may come down.
Crisil said in a report released on the indian economy that private consumption is expected to improve. However, investment growth will depend on private capital expenditure. The report said that private consumption is expected to improve further due to improvement in agricultural production and expectation of reduction in food inflation. The softening of food inflation will create space for discretionary spending in the domestic budget. The report said that the increased exemption in income tax in the Union Budget 2025-26 will boost consumption. Additionally, easing of monetary policy by the reserve bank of india (RBI) will also boost consumption.
Crisil expects the RBI to cut the repo rate by 50-75 basis points in FY2025-26. Citing official data, the Crisil report said GDP growth for 2024-25 is projected at 6.5 per cent, lower than the GDP growth rate of 9.2 per cent in the previous fiscal. However, the growth rate remains close to the pre-pandemic decade average of 6.6 per cent between FY11 and 2020 and will help india retain its tag of the fastest growing large economy.
Gross domestic product (GDP) growth is expected to rise to 7.6 per cent in the fourth quarter, taking GDP growth to 6.5 per cent in the current fiscal. The GDP growth rate has increased to 6.2 percent in the third quarter of the current financial year, which is higher than the GDP growth rate of 5.6 percent in the second quarter.
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