New Delhi, 3 March (IANS). India’s GDP growth rate can be 6.5 percent in FY 2025-26. Along with this, the monsoon season can also be normal, due to which the prices of commodity are expected to be softened.
Crisil’s report said on Monday that private consumption is expected to improve. However, investment growth will depend on private capital expenditure.
The report said that further improvement in personal consumption is expected due to improving agricultural production and expectation of decrease in food inflation. Softness in food inflation will make a place for discretionary expenses in the domestic budget.
The report further stated that the increase in income tax in the Union Budget 2025-26 will promote consumption.
Additionally, the relaxation of monetary policy by the Reserve Bank of India (RBI) will also promote consumption.
Crisil hopes that the RBI may cut the repo rate by 50-75 basis points in FY 2025-26.
Citing official data, Crisil’s report said that the GDP growth rate for 2024-25 is estimated to be 6.5 percent, which is less than 9.2 percent of the GDP growth rate for the previous financial year. However, the growth rate remains close to the average of 6.6 percent of the decade before the epidemic between financial year 2011 and 2020, and this will help India to retain its tag of the fastest growing large economy.
The growth rate of GDP (GDP) in the fourth quarter is expected to increase to 7.6 percent, which will increase GDP growth in the current financial year. The GDP growth rate in the third quarter of the current financial year has increased to 6.2 percent, which is more than 5.6 percent of the GDP growth rate for the second quarter.
-IANS
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