Economy is getting stronger due to improvement in rural areas and strong service exports
The successful bilateral trade agreement between the US-India can make the current situation quite spectacular. This can open access to new markets and can promote exports. This has been said in a report released by the Finance Ministry on Tuesday. India and the US can conclude the interim trade agreement before July 8. In this, India is emphasizing on giving full discount from 26 percent tariff on domestic goods. On April 2, the US imposed a separate 26 percent retaliation on Indian goods, but was suspended for 90 days till 90 days. However, 10 percent of the basic tariffs have been kept in force. The report said that in the midst of global uncertainty, India has the ability to remain one of the attractive destinations for investment.
India remains the fastest growing major economy
The Finance Ministry’s Monthly Economic Review states that foreign investors can give positive reactions on policies that strengthen the country’s medium -term development prospects. The report states that especially, policies that enhance the skills and productivity of the country’s youth work force can significantly strengthen the cycle of investment and growth. According to this, India remains the fastest growing major economy. While different global agencies have made significant cuts in the growth rate of other countries, this is the lowest in India’s case.
India’s GDP growth for 2025-26 is estimated to be 6.2 percent
According to the International Monetary Fund (IMF) World Economic Scenario (April 2025), India’s actual GDP growth for 2025–26 is estimated to be 6.2 percent, which is 0.30 percent less than its previous forecast in January 2025. These changes have been made in view of global uncertainties and business stress. Many agencies have estimated India’s growth to be 6.3 percent to 6.7 percent in FY 2025-26, which is getting support from strong domestic foundation, stable major economic management and increasing government capital expenditure. At the same time, declining inflation further strengthens this scenario. According to the report, strong domestic foundation for the Indian economy, wide economic management and ability to withstand external shocks remain its specialty.
Economy is getting stronger due to improvement in rural areas and strong service exports
Strong private consumption, especially in rural areas improve the primary engine of improvement and strong service export development. It said, “The service sector is constantly expanding healthy. Due to this, some softening of goods exports is being made. The Indian rupee remains relatively stable and foreign exchange reserves are providing protection against external shocks. ”The report states that the approach to inflation remains optimistic. Food inflation pressure is expected to be reduced due to good rabi crop in the coming time, increase in acreage under summer crops and better buffer stock of food grains. The meteorological department’s estimate of high rainfall and the fall in crude oil prices strengthens the trend of decrease in inflation.
With PTI inputs
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