Indian Finance Ministry reports urban consumption decline, but expects public spending rise and maintains 6.5-7% FY25 growth forecast.

The Indian Finance Ministry has reported a decline in urban consumption but expects public spending to rise for the remainder of the fiscal year. Despite geopolitical tensions and global economic uncertainty, India’s growth forecast remains at 6.5-7% for FY25, supported by strengthening rural demand and low oil prices. Challenges include reduced vehicle sales and sluggish exports due to weak global demand. Nonetheless, the ministry maintains confidence in the country's macroeconomic stability.

September 26, 2024
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