According to a study released on Monday by the finance ministry, India’s GDP is expected to develop by 6.5% to 7% in the current fiscal year that ends in March 2025, which is less than the 7.2% growth predicted by the central bank of the nation.

The annual Economic Survey, which Finance Minister Nirmala Sitharaman presented to parliament ahead of Tuesday’s federal budget, projects a slower rate of growth than the 8.2% growth seen in the prior year and the upwardly revised estimates of 6.8% to 7.2% by rating agencies and private economists.

According to the finance ministry’s Chief Economic Adviser V. Anantha Nageswaran and his team’s assessment on the status of the economy, slower growth in private investments may occur if risks are evenly distributed.

“Private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity,” it said.

It is largely anticipated that Prime Minister Narendra Modi, whose party failed to reach the halfway point in the parliamentary elections, will increase budget expenditure to address worries about uneven economic development by leveraging robust tax receipts and a record $25 billion dividend from the central bank.

(Adapted from MarketScreener.com)

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