Good news for the indian economy!
With the start of the new financial year, EY has given good news about the indian economy. According to their new report, the indian economy will grow at a rate of 6.5 percent this year. But this will happen only when the government takes the right decisions regarding the use of money.
According to the report, in the last financial year 2024-25, the country's economy registered a growth of 6.4 percent. This figure is slightly lower than the revised estimates released last month by the National Statistical office (NSO), which estimated a growth of 6.5 percent for 2024-25. Experts believe that both private consumption and government investment will have to be promoted to keep the economy strong this year.
What else is in the report?
The EY report points out some major challenges. There has been a decline in private sector investment for some time, due to which the Finance Ministry had recently appealed to the industry to increase investment. Also, the government will need to increase spending in important sectors like health and education. According to the report, spending on education will have to be increased from the current 4.6 percent to 6.5 percent of GDP by 2048, while health expenditure will have to be taken to 3.8 percent.
Trust in youth
EY india Chief Policy Advisor DK Srivastava told the media that India's young population is a big opportunity for the country. According to him, "The growing working-age population can start a positive cycle of growth, employment, savings and investment. But for this we have to ensure adequate investment on health, education and infrastructure." Financial experts believe that the biggest challenge before the government this year will be to increase revenue and at the same time maintain fiscal discipline. The report suggests that gradually increasing the revenue-to-GDP ratio from 21 percent to 29 percent will help the government achieve these goals.
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