India's Economy: Resilient Growth Expected by 2025

S&P Global Ratings anticipates resilient growth in the Indian economy by 2025, driven by strong urban consumption and infrastructure investment. While the current fiscal growth is projected at 6.8%, inflationary pressures are expected to ease, allowing the RBI for modest monetary policy easing.

S&P Global Ratings announced that the Indian economy is expected to demonstrate resilient growth by 2025. The forecast hinges on robust urban consumption, steady growth in the service sector, and continued infrastructure investment.

The agency maintained its growth projection for the current fiscal year at 6.8%, predicting a slight increase to 6.9% for the 2025-26 period. Economist Vishrut Rana highlighted that monetary policy might ease moderately as inflation pressures diminish.

Recently, the Reserve Bank of India retained its interest rate at 6.5% to curb inflation while reducing the cash reserve ratio to infuse liquidity. Despite an 8.2% growth rate last fiscal year, challenges like post-pandemic weaknesses and a competitive global market remain for India.

(With inputs from agencies.)