India The growth rate of GDP (GDP) will be more than 6.5 per cent in the next financial year (2025-26). Moody’s ratings estimated this. The Indian economy is expected to grow at a rate of 6.3 per cent in the current financial year. Moody’s said on Wednesday that high government capital expenditure, tax deduction and reduction in interest rate will increase consumption and the Indian economy will increase at a higher speed in the next financial year. Estimating the stable Outlook for the banking sector, Moody’s said that although the operating environment of Indian banks will remain favorable in the next financial year, their asset quality will decline slightly after sufficient improvement in recent years.
Economic growth is expected to rise again
There will be some pressure on without guaranteed retail loans, micro finance loans and small business loans. The profitability of banks will remain sufficient, as the decline in net interest margin (NIM) is likely to remain modest. Moody’s stated that after a temporary softening in mid -2024, India’s economic growth is expected to rose again. It will record one of the fastest rates in large economies globally. Moody’s rating said, “India’s actual GDP growth will exceed 6.5 per cent in the financial year 2025-26 with tax deduction and monetary ease to promote government capital expenditure, consumption. Its current financial year is estimated to be 6.3 percent. ”
GDP growth rate estimated to be 6.3-6.8 percent
The Economic Review of the Finance Ministry has estimated to be 6.3-6.8 per cent for the next financial year. According to official estimates, the GDP growth rate will be 6.5 percent in the current financial year. In the July-September 2024 quarter, the country’s actual GDP growth rate slowed down to 5.6 percent, which increased to 6.2 percent in the next quarter. Moody’s hopes that India’s average inflation rate will be reduced from 4.8 per cent of the previous year to 4.5 per cent in FY 2025-26. The Reserve Bank of India (RBI) increased its policy rate by 2.50 percent from May 2022 to February 2023 to control inflation, which has gradually increased interest rates for the borrowers. In February 2025, RBI reduced its policy rate from 0.25 percent to 6.25 percent.
(PTI/Language)
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