S&P Global Ratings has forecasted that the Indian economy will showcase robust and resilient growth by 2025, supported by various key factors. These include strong urban consumption patterns, steady progress in the service sector, and ongoing investments in infrastructure.
The agency has held firm on its growth projection for the current fiscal year, predicting an expansion of 6.8%. Looking ahead, it anticipates a marginal rise in growth to 6.9% for the fiscal year 2025-26. Economist Vishrut Rana pointed out that as inflationary pressures ease, “monetary policy might ease moderately.”
Recently, the Reserve Bank of India (RBI) maintained its interest rate at 6.5% in a bid to control inflation. Simultaneously, it reduced the cash reserve ratio, a move aimed at infusing liquidity into the financial system.
Although India recorded a remarkable growth rate of 8.2% in the previous fiscal year, the country continues to face challenges. These include lingering weaknesses from the post-pandemic recovery and intense competition in the global market.
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