India's GDP growth is projected to exceed 7% for FY25, but risks from falling government investment loom.

According to an Ernst & Young report, India's GDP growth is projected to exceed 7% for FY25, supported by strong government investment and controlled inflation. However, the Reserve Bank of India (RBI) remains cautious, with inflation at 5.5% as of September 2024. The RBI forecasts 7.2% growth, but a 19.5% drop in government investment poses risks. The IMF predicts a decline in growth from 8.2% in FY24 to 7% in FY25, emphasizing the need for increased government spending to sustain momentum.

November 02, 2024
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