Transiting from 2024 to 2025 will have its uncertainties
2 weeks, 6 days ago

Transiting from 2024 to 2025 will have its uncertainties

Live Mint  

In 2024, the external environment turned out to be benign, as evidenced by stability in crude prices. Looking ahead, in 2025, there is certainly optimism on the domestic front as lower inflation and interest rates should help revive investment. Interest rates are likely to be lowered in February provided inflation remains within an acceptable range and the cycle could involve up to 75 bps cut in the calendar year. On its part, the government would be well placed to lower the fiscal deficit further to probably less than 4.5% of GDP for FY26 as revenue collections may be expected to be buoyant. The potential impact on higher deficits and borrowing cannot be missed and this would also have an influence over the future direction of interest rates given the potential inflation.

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History of this topic

India to lead South Asia’s Economic Growth in 2025 says UN Report
4 days, 10 hours ago

India to lead South Asia’s Economic Growth in 2025 says UN Report

Deccan Chronicle  

Mumbai: The Indian economy is projected to expand by 6.6 per cent in 2025 and 6.8 per cent in 2026, primarily supported by robust private consumption and investment, export growth in services and certain manufactured goods according to a United Nations World Economic Situation and Prospects Report 2025. According to the report, the near-term outlook for South Asia is expected …

Sri Lanka c. bank to focus on stronger crisis recovery in 2025
6 days, 16 hours ago

Sri Lanka c. bank to focus on stronger crisis recovery in 2025

Live Mint  

By Uditha Jayasinghe COLOMBO, Jan 8 - Sri Lanka will focus on stronger recovery this year after the island nation posted real GDP growth of 5% in 2024, the highest in seven years, its central bank chief said on Wednesday, hoping to accelerate a rebound from its worst financial crisis in decades. Sri Lanka's economy crumpled under a severe foreign …

Risks to economy escalating in 2025, says SBICAPS
1 week ago

Risks to economy escalating in 2025, says SBICAPS

Live Mint  

New Delhi: The economic outlook for calendar year 2025 remains cautious, with many of the risks from the last year expected to escalate, leading to heightened uncertainty and volatility, according to SBICAPS. Fresh structural shifts, such as rising currency volatility and the diversification of global supply chains, are unfolding against a backdrop of ongoing trade wars, geopolitical upheavals, and political …

Prospects for Indian Economy Improving Says RBI Gov
2 weeks, 1 day ago

Prospects for Indian Economy Improving Says RBI Gov

Deccan Chronicle  

Mumbai: Amidst an uncertain global macroeconomic and financial environment, the Indian economy is exhibiting resilience and stability with the Gross Domestic Product projected to grow at 6.6 per cent in 2024-25. The growth would be aided by the revival in rural consumption, pickup in government consumption and investment and strong services exports said the Reserve Bank of India’s Financial Stability …

India FY25 GDP: Indian economy poised to grow 6.6% in FY25 on revival in urban, rural demand: RBI Report
2 weeks, 1 day ago

India FY25 GDP: Indian economy poised to grow 6.6% in FY25 on revival in urban, rural demand: RBI Report

Live Mint  

India FY25 GDP: India's gross domestic product is projected to grow at 6.6 per cent in 2024-25, aided by a revival in rural consumption, a pickup in government consumption and investment, and strong services exports. RBI's economic review: Key metrics from December issue According to the RBI, the real GDP growth is expected to recover in Q3 and Q4 of …

Why inflation will matter more in 2025: Explained
2 weeks, 3 days ago

Why inflation will matter more in 2025: Explained

The Hindu  

The story so far: It has been what one may call, a bittersweet year for the economy, with a sweet first half, when growth surprised everyone, including the government. Top government functionaries have been making noises since late November about the need for RBI to cut rates, with some suggesting it should ignore volatile food prices and prioritise growth and …

Expert view: Here are key risks market will have to address in 2024
1 year ago

Expert view: Here are key risks market will have to address in 2024

Live Mint  

Market has initiated 2024 with a positive stance, the outlook for equities appears promising, however equally favorable projections are for debt, commodities, and real estate. Additionally, central banks are expected to continue quantitative tightening to address excess liquidity in the financial market resulting from the expansive policies implemented during the pandemic, not an advisable period for equities. The current upswing …

IMF projects Indian economy to grow at 6.1% in 2023
1 year, 5 months ago

IMF projects Indian economy to grow at 6.1% in 2023

The Hindu  

The IMF on July 25 projected a growth rate of 6.1% for India in 2023, which is a 0.2 percentage point upward revision compared with the April projection. “Growth in India is projected at 6.1% in 2023, a 0.2 percentage point upward revision compared with the April projection,” it said in its latest update of the World Economic Outlook. Inflation …

India's GDP Projected To Grow 6.5% In FY24, Domestic Economy Resilient: RBI
1 year, 7 months ago

India's GDP Projected To Grow 6.5% In FY24, Domestic Economy Resilient: RBI

News 18  

India’s GDP growth for 2023-24 is projected at 6.5 per cent amid softer global commodity and food prices, and good rabi crop prospects, among others, according to the RBI’s annual report 2022-23 released on Tuesday. The cumulative increase in policy repo rate by 250 bps last year would steer the disinflationary process, along with supply side measures to address transient …

Indian Economy Expected To Grow 6.7% In 2024, Country Remains A Bright Spot: UN
1 year, 7 months ago

Indian Economy Expected To Grow 6.7% In 2024, Country Remains A Bright Spot: UN

News 18  

India’s economy is expected to grow by 6.7 per cent in the calendar year 2024, supported by resilient domestic demand, according to a UN report which said higher interest rates and weaker external demand will continue to weigh on investment and exports this year for the country. The World Economic Situation and Prospects as of mid-2023 released on Tuesday said …

Indian economy likely to navigate rough global weather in 2023: Assocham
2 years ago

Indian economy likely to navigate rough global weather in 2023: Assocham

The Hindu  

India's economy is expected to navigate rough global weather in 2023 due to resilient consumer demand, better corporate performance and abating of inflation, even as the year is likely to be full of challenges and opportunities, Assocham said on January 2. "While the global outlook seems rather tough, the Indian economy is set to stay on steady ground, helped by …

Indian economy poised for further growth in 2023 despite global headwinds
2 years ago

Indian economy poised for further growth in 2023 despite global headwinds

Deccan Chronicle  

NEW DELHI: The Indian economy recovered from the COVID-induced downturn during 2022 and is poised for further improvement in the coming quarters though downside risks emanating from geopolitical tensions, strengthening dollar and elevated inflation will continue. The challenges before the government and the Reserve Bank in the new year would be to arrest inflation, check declining value of rupee against …

Stable shores in India only after 2023’s global storm
2 years, 1 month ago

Stable shores in India only after 2023’s global storm

Live Mint  

Central bank governors have a lot in common with ship captains. Markets picked up RBI’s repeated mention of elevated core inflation, comment that the policy rate adjusted for inflation is still accommodative, and its “withdrawal of accommodation" stance, which signals more policy normalization to come. In an uncertain environment, firm guidance by central banks can indeed be counterproductive, in our …

Growth revival highest priority in FY20: RBI annual report
5 years, 4 months ago

Growth revival highest priority in FY20: RBI annual report

Live Mint  

Mumbai: The Reserve Bank of India on Thursday reiterated that reviving consumption demand and private investment have assumed the highest priority in 2019-20, a sign that more rate cuts could be on the anvil. “Strengthening the banking and non-banking sectors, a big push for spending on infrastructure and implementation of much needed structural reforms in the areas of labour laws, …

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