India’s prospects are favorable amid the global slump, according to FinMin

The Finance Ministry said on Friday that India’s prospects for the next fiscal year were promising due to a rise in private investment and a downward trend in inflation.

The inclusion of Indian bonds in the Bloomberg bond index starting in January 2025, according to the Monthly Economic Review, could increase inflows. It said that consistent increases in consumption are being driven by strong investment activity. “Private investment appears to have been overshadowed by the ongoing emphasis on public investment,” the Department of Economic Affairs’ February evaluation said.

The GDP growth projection for the current fiscal year has been revised by the National Statistical Office (NSO) to 7.6% from 7.3%.

For three quarters in a row, India’s growth rate has been above 8%, solidifying its status as a notable performer among the slowing global economic trends. According to the government, other agencies share a similar opinion and have revised India’s FY24 growth predictions to be closer to 8%.

According to the study, “India looks positively towards the dawn of FY25 overall.” It was said that rising demand for residential real estate in tier-2 and tier-3 cities is positive for further building. The recovery of non-farm employment has increased the ability to absorb labor leaving agriculture.