India’s growth momentum holds firm despite global challenges: Finance Ministry

The Indian economy is scheduled to grow by 6.5 % in the 25th fiscal year, despite external challenges, driven by strong agricultural production and the flexible services sector, as mentioned in the monthly economic report issued by the Ministry of Economic Affairs.

The report also stipulates that retail enlargement decreased to 3.6 % in February 2025, led by a sharp decrease in food enlargement due to seasonal corrections in vegetable prices and effective measures while agricultural production estimates indicate continued stability, as autumn product and RABI continued by 6.8 % and 2.8 % respectively.

The Union government maintained a balance between financial unification and growth, with the budget for 2025-26 clarification of debt-reducing debt. The goals of deficit and financial spending are still compatible with estimates, which enhances confidence in economic management. It is expected that the capitalist spending of the post - government will take it, which supports economic activity, as mentioned in the report.

The stock markets in India witnessed corrections after a long period of bull operated, which led to profit by foreign investors. However, strong external flows in the debt market and the confidence of the local fixed investor may reduce the effect. On the external front, the report sheds light on the fact that the essential goods (non -oil, non -Pola) grew by 8.2 % during the fiscal year 25 (April to February), which indicates resilience. Infloves of the total foreign direct investment increased by 12.4 % in the same period, while foreign currency reserves remain sufficient to cover more than 11 months of imports.

Employment trends remain stable, as the urban unemployment rate in the Q3 FY25 has not changed. Various future surveys indicate optimism and increase preparation for employment in the next quarter. The report indicates that inflationary pressure has decreased to its lowest level in seven months in February, due to a large extent to low food inflation, and that the expectation of the production of standard food pills in 2024-25 is likely to maintain inflation.

However, the risks, including geopolitical uncertainty, volatile basic commodity prices, and financial market fluctuations remain.

The report states that it is expected to support economic growth in the quarter by improving export growth, government capital expenses after the elections, and economic activity associated with events such as Kumbh Mema. Suggested changes in the Personal Income Tax Temple are expected to improve available and consumption, while the policy rate of 25 points in February, along with improved liquidity provisions, will support the momentum of growth.