Moody’s
Moody’s Analytics said on Wednesday that India will have to make changes in its fiscal and monetary policy to achieve 6.4 percent GDP growth in 2025 amid the decline in rupee, declining foreign investment and unstable inflation. Analyst firm Moody’s Analytics hoped that the budget of FY 2025-26 on February 1 would support domestic demand, especially investment, while the fiscal deficit would be targeted to keep GDP less than 4.5 percent of GDP. The fiscal deficit in FY 2023-24 was 5.6 percent of the GDP (GDP), which is estimated to be reduced to 4.9 percent in FY 2024-25.
India is facing difficulty in 2025
Moody’s Analytics co-author Aditi Raman said that India is facing a difficult situation in 2025. Rupee weakness, decreasing foreign investment and unstable inflation are the largest economic risk sectors. If India has to achieve a 6.4 percent increase, then there is a need to change the fiscal and monetary policy, which may be in the first half of the year. ”Rating agency Moody’s support unit said that India fastest in Asia in 2024 One of the growing economies was but its GDP growth has decreased in the first three quarters.
Domestic demand will be reduced due to high interest rates
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. According to this, if it is compared to the 7.8 percent increase in 2023, the softness of the economy is indicating a cautious stance for the year 2025. Domestic demand will be reduced due to prolonged interest rates. In addition, export environment can be challenging due to increasing duty on Indian imports in the US.
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