New Delhi: CareEdge Ratings has forecasted India’s GDP growth at 6.5% in the current financial year (2024-25). The GDP growth will moderate but remain healthy. India’s GDP growth will rise to 6.7% in 2025-26.
The Reserve Bank of India (RBI) recently revised India’s growth forecast for FY25 to 6.6%, down from 7.2%.
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Inflation is also expected to moderate, with Consumer Price Index (CPI) inflation projected at 4.8% for 2024-25 and 4.5% for 2025-26. Food inflation is likely to ease due to a strong kharif harvest and favorable rabi sowing conditions. Wholesale Price Index (WPI) inflation is estimated to average 2.5% in 2024-25 and 3% in 2025-26.
On the fiscal front, CareEdge Ratings projects a fiscal deficit of 4.8% of GDP for 2024-25, slightly below the budgeted 4.9%. While corporate tax collections remain weak, robust income tax collections are expected to offset the shortfall. However, government capital expenditure may fall short by Rs 1.5 trillion.
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