Suspense Crime Sach Ka Dam
The Indian economy will grow at a rate of 6.6 percent in 2025-26. This latest estimate has been made by India Ratings and Research on Wednesday. This estimate for the current financial year is 6.4 percent. The rating agency believes that investment will be a major growth driver for the Indian economy even in the financial year 2025-26. According to PTI news, the Indian economy has experienced a slowdown in the last three quarters, which is expected to reverse from the December quarter.
GDP growth was affected because
According to the news, India’s GDP growth till FY24 was affected by the post-COVID-19 effects. The June quarter GDP growth of FY25 was affected by the combination of strong base effect and general elections in May 2024, while the July-September period saw the extended impact of weak private sector capital expenditure on growth. India Ratings and Research believes that the Indian economy is facing monetary, fiscal and external tightening. The agency said that although monetary conditions are now expected to ease, fiscal and external tightening are expected to continue in FY26 as well.
Inflation rate is expected to be this much
Despite all this, FY26 GDP growth is expected to be similar to India’s best decadal growth (FY11-FY20), said Devendra Kumar Pant, Chief Economist and Head of Public Finance, India Ratings and Research. India Ratings and Research is of the opinion that if the dollar continues to strengthen, growth and inflation forecasts may be affected by any tariff war and any capital outflows. Retail inflation is expected to average 4.4 per cent in FY26, lower than the 4.9 per cent forecast for FY25.
What did he say about the reduction in interest rates?
The timing of the interest rate cut will depend on how incoming data – the arithmetic of the Union Budget for FY26, inflation projections and the evolving domestic and global scenario – align with the RBI’s flexible inflation targeting approach. The rating agency said the merchandise trade account is expected to have a deficit of US$308 billion in FY26.
