India to grow at 6.5-7% in FY25 driven by strong economic activity: Govt

Growth in FY25: In the monthly economic review by the Finance Ministry, the government has kept the growth forecast of 6.5-7 per cent intact for FY25.  In the economic survey presented by the Chief Economic Advisor V. Anantha Nageswaran has also pegged India’s growth between 6.5-7 per cent for FY25.  The bullishness of FinMin in economic review has come just a few days before the April-June quarter GDP growth is expected to come.

The ministry also highlighted that the declining trend of consumer and industrial surveys has to be monitored for future trends. The apex bank a few months back had revised India’s growth forecast from 7 per cent to 7.2 per cent in FY25.

Throwing light on the capital expenditure, the finance ministry highlighted that capex spending will pick up speed in the remaining months of the year.  The capex spending in the first quarter was lower by 35 per cent YoY and the total expenditure was lower 7.7 per cent YoY in the same quarter.

Indicating the robust economic activity, the FinMin in the economic review report said, “The month saw impressive milestones being reached, substantial growth in goods and services tax collections, and a significant rise in e-way bill generation, which points to an overall increase in economic activity. The stock market indices also reached record highs in July.”

The review by FinMin has also said that by sticking to the fiscal glide path to achieve 5.6 per cent as declared in the budget is achievable. In the backdrop of robust tax collection, and robust economic growth, the fiscal deficit is bound to decline. The fiscal deficit as declared by the Finance Minister at the time of presenting the full budget was at 5.9 per cent against the expectation of 5 per cent as the government received more than the expected RBI dividend.