India’s growth is estimated to be 6.4 percent, the highest in the last four years. The Reserve Bank of India has projected inflation to be 4.6 percent in the first quarter and 4 percent in the second quarter. Here’s a look at it.
There are only 22 years left to achieve the goal of ‘Vixit Bharat’ by 2047. In this context, stagnation in growth, inflation and financial distress on middle-class households are the things to watch out for.
The weakening of the rupee, declining foreign investment and unstable inflation are the biggest economic risks.
The Central Budget is presented in an economic environment of rising inflation, depreciation of the rupee and low purchasing power of the people.
The Central Budget is very important in allocating funds for the country’s economic development projects. The budget ensures the progress of the country.
Although this year’s budget will lead to growth, it is expected to be a budget that supports the financial resources of the people.
Retail inflation has been above the Reserve Bank’s medium-term target of 4 per cent for several months. Low wage growth has forced middle-class households to cut spending on essential items.
The Reserve Bank has projected inflation to be 4.6 per cent in the first quarter of 2025-26 and 4 per cent in the second quarter. India’s growth is estimated to be 6.4 per cent this year.
Aditi Raman, associate economist at Moody’s, echoed the sentiment, saying there are serious challenges in balancing growth, containing inflation and stabilizing the value of the Indian rupee.
The Central Budget will support domestic demand, especially investment, and the fiscal deficit will be less than 4.5 per cent of GDP in the next fiscal, Moody’s said in a report.
The Moody’s report, which has predicted that GDP growth will decline to 6.4 percent in 2025, has also pointed out that the central government should bring a change in its fiscal and economic policies.
Moody’s also said that the value of the rupee has weakened significantly due to the policy changes of the US Federal Reserve last September.
Subsequently, when Trump won the US presidency and investors sold Indian assets and made high profits, the value of the rupee increased.
As Trump imposes high taxes on imports of Indian goods, exports will be affected. As a result, the country’s economic growth may be hampered, the Moody’s report also states.
2025 is expected to be a challenging year. Growth is slowing, the value of the rupee is falling against the dollar. Inflation is also expected to increase.
Considering the high inflation, the public is expecting important announcements in the budget to reduce income tax rates and increase the exemption limit, which will provide relief and happiness to the middle class.
India on the path of development… What are the announcements that will be included in the Central Budget…?
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