Business

India’s Growth Stabilizes With Rising Private Consumption In Fiscal 2025

According to a Crisil report, India’s economic expansion is becoming more balanced, with private consumption playing a larger role in GDP growth.

The report noted a slight upward revision of 10 basis points (bps) in the second advanced estimate, bringing the expected real GDP growth for fiscal 2025 to 6.5%. This aligns closely with the pre-pandemic decade’s average growth rate of 6.6%.

Dharmakirti Joshi, Chief Economist at Crisil stated, “And this is over a sharp upward revision of 100 bps in the previous year’s growth to 9.2 percent.”

“We expect the GDP growth at 6.5 per cent next fiscal, supported by normal monsoons, lower food inflation and rate cuts of 75-100 basis points in the current cycle that began earlier this month,” he further asserted.

Public and household investments were the primary growth drivers in fiscal 2024, as expected.

However, despite financial stability and low debt levels, corporate investments have yet to see a significant boost.

Concerns over tariff disputes and the possibility of increased imports from China have made businesses cautious about committing to major investments.

“The complexity of risks from tariff actions – already initiated and likely to be followed by more such measures in the coming months – is evolving and creates a downside bias to our forecasts,” Joshi noted.

Quarterly & Annual Growth Outlook

India’s GDP growth picked up pace in the third quarter (October-December) of 2024-25, reaching 6.2%, up from a revised 5.6% in the previous quarter.

For the full financial year 2024-25, growth is now likely at 6.5%, while the economic expansion for 2023-24 has revised to 8.2%, marking the highest level in 12 years.

Meanwhile, the fiscal deficit for the first 10 months of the current financial year (April-January) stood at ₹11.70 lakh crore, accounting for 74.5% of the annual target.

Also Read: India’s Logistics & Warehousing Sector Expands With Tier 2 & 3 Cities Leading Growth

Mankrit Kaur

Recent Posts

PM Modi Meets Bhutan PM Tobgay At BIMSTEC Summit; Highlights Strong Bilateral Ties & Regional Cooperation

PM Narendra Modi met Bhutanese PM Tshering Tobgay on the sidelines of the 6th BIMSTEC…

4 hours ago

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

6 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

6 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

7 hours ago

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…

8 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

9 hours ago