New Delhi
The Indian economy is showing strong growth despite global challenges, according to the Ministry of Finance’s latest report. The Department of Economic Affairs’ Monthly Economic Review highlights robust growth across sectors, driven by positive consumer and investor sentiment.
The Reserve Bank of India (RBI) forecasts 7% real GDP growth for 2024-25, thanks to increased rural demand and a thriving manufacturing sector. The International Monetary Fund (IMF) expects India’s growth to be 6.8% in 2024-25 and 6.5% in 2025-26, citing robust domestic demand and a growing workforce.
The report points to improvements in consumer confidence and employment prospects. The government’s efforts to manage inflation have paid off, with the Consumer Price Index (CPI) falling from 6.7% in 2022-23 to 5.4% in 2023-24. March 2024 saw the lowest inflation rate in 10 months at 4.85%.
Despite this progress, the RBI’s monetary policy committee remains cautious due to ongoing uncertainties around food prices and potential weather shocks. Geopolitical tensions and oil prices also pose risks. However, an above-normal monsoon forecast by the Indian Meteorological Department (IMD) offers a positive outlook for the Kharif crop, which could help stabilize food prices.
