look news india
According to Moody’s Analytics, India will have to change its fiscal and monetary policy to achieve 6.4 percent GDP growth in 2025 amidst the fall in rupee, declining foreign investment and unstable inflation.
The analyst firm has hoped that the budget of FY 2025-26, which will come on 1 February, would support domestic demand, especially investment. Also, a target will be set to keep the fiscal deficit less than 4.5 percent of GDP. The fiscal deficit in FY 2023-24 was 5.6 percent of GDP, which is estimated to be reduced to 4.9 percent in FY 2024-25.
Moody’s economist comments
Aditi Raman, co-at-author in Moody’s Analytics, said, “India is facing a difficult situation in 2025. Rupee weakness, decreasing foreign investment and unstable inflation are the biggest economic risks. If India has to gain 6.4 percent increase, then there is a need to change the fiscal and monetary policy, which may be possible in the first half of the year. ”
Economy growth in 2024
Rating agency Moody’s reported that India was one of the fastest growing economies in Asia in 2024, but its GDP growth has declined in the first three quarters. The calendar is expected to increase a total of 6.8 percent in the year 2024 due to the rise in GDP growth in the December quarter. However, if it is compared to a 7.8 percent increase in 2023, the softening of the economy indicates vigilance for the year 2025. Long interest rates persist for a long time can reduce domestic demand, and the increase in duty on Indian imports in the US can make export conditions challenging.