FY25 likely to witness close to 7% economic growth, but risks remain

Finance Minister Nirmala Sitharaman at the Business Standard Manthan said the high capex growth needs to be maintained to meet growth targets

India may be set for another year of robust growth in the financial year beginning April 1 (2024-25, or FY25), with inflation projected to ease closer to the Reserve Bank of India’s comfort zone, which may allow it to start the rate-cut cycle.

However, risks may stem from global factors such as slower-than-expected global growth, higher commodity prices, and geopolitical turbulence, which may adversely impact growth and macro-stability, research agencies and economists said.

After robust economic growth of 7.6 per cent in 2023-24 (FY24), most macroeconomic forecasters have pegged growth in gross domestic product (GDP) for FY25 between 6.8 per