New Delhi,jan 16
FICCI forecasts India’s GDP growth at 6.4 per cent for the financial year 2024-25. This marks a downward revision from the 7.0 per cent projection made in September 2024 and reflects a notable slowdown from the 8.2 per cent growth recorded in 2023-24.India’s economic outlook for 2025 presents cautious optimism with consumer spending expected to recover, aided by a positive outlook for agriculture and rural consumption, according to the latest Economic Outlook Survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).Government-led investments in infrastructure, housing, and logistics are likely to drive growth. However, private capital expenditure is expected to remain subdued due to geopolitical uncertainties and uneven domestic demand.
The report also highlights potential opportunities in manufacturing, electronics, and pharmaceuticals as global supply chains diversify away from China. Economists stressed the importance of targeted policies to attract foreign direct investment and enhance India’s manufacturing capabilities.
The survey, conducted in December 2024, attributes the economic moderation to global uncertainties and domestic challenges. The agriculture sector, including allied activities, is expected to grow at 3.6 per cent, while the industrial and services sectors are projected to expand by 6.3 per cent and 7.3 per cent, respectively.
Economic activity is likely to gain momentum in the second half of the fiscal year, supported by higher public capital expenditure, festive demand, and normalization of industrial activity post-monsoon.The survey estimates the Consumer Price Index (CPI)-based inflation at 4.8 per cent for 2024-25, aligning with the Reserve Bank of India’s (RBI) forecast in its December 2024 monetary policy. Food inflation, which has strained household budgets for over a year, is anticipated to ease, providing relief to consumers.Economists participating in the survey highlighted the resilience of the global economy despite persistent uncertainties, noting uneven growth prospects across regions.
