Indian economy: what to expect in 2025?

| Video Credit:
The Hindu

At the start of 2024, there was a lot of excitement about the Indian economy – the country was one of the fastest growing economies in the world and there was anticipation that India will become a $4 trillion economy in 2024-25 and become the world’s third-largest economy by 2027. The consensus was that the Indian economy was expected to grow at an impressive 7%.

However, the latest data from the National Statistics Office (NSO) showed the real GDP growth was at 5.4% in the second quarter of this financial year, the lowest in seven quarters. The Gross Value Added growth slowed to 5.8%.

This growth is underwhelming, given that Reserve Bank of India recently projected that the GDP would grow by 7%. In its meet in December, the MPC has now downgraded the growth forecast for 2024-25 to 6.6% from 7.2%.

Is the Indian economy slowing down or is the 5.4% growth pace just “a one-off number”, as Chief Economic Adviser V. Anantha Nageswaran put it? We spoke to Rajani Sinha Chief Economist at CareEdge to find out what’s in store for 2025.

Video: Thamodharan B.