The last few years since the Corona pandemic have been very good for the Indian economy. During this period, India consistently achieved GDP growth of 6 to 8 percent. But, in the September quarter of the financial year 2024-25, India's growth rate fell to 5.4 percent. This is the lowest level in seven quarters. During this period, inflation increased very rapidly, which had a direct impact on consumption. Let us know how 2025 can be in terms of India's economy. Will inflation increase, will RBI cut interest rates or not?

Will the economy improve in the third quarter of 2024-25?

Union Finance Minister Nirmala Sitharaman in September described the fall in GDP growth to 5.4 percent as a 'temporary setback'. He said that India's growth rate will remain strong in the coming quarters. Economists of the Reserve Bank of India (RBI) also say that there are indications for the third quarter of 2024-25 that the economy is improving. The reason for this is good sales in the festive season. Also, rural demand is improving steadily.

Will interest rates be cut in February MPC?

To accelerate the pace of economic growth, all eyes are now on the RBI's February 2025 MPC. The central bank's monetary policy panel will meet for the first time under the leadership of new governor Sanjay Malhotra. This meeting will be held immediately after the Union Budget 2025-26, in which the economic and fiscal roadmap of the third phase of the Modi government will be presented. Its importance is going to be very high given global tensions and Donald Trump becoming President of the US.

The prospects for the Indian economy look bright in the coming year and we can expect the growth rate to cross the 7 percent mark in addition to the 6.6-6.8 percent expected for FY25. The reduction in inflation in the coming months will increase consumption, which will help increase private investment in the consumer goods sector. This is a very positive sign for the economy.

Madan Sabnavis, Chief Economist, Bank of Baroda

Will India's economic growth remain strong?

Most economic experts believe that India's GDP growth will remain excellent in the coming times, as our economic fundamentals are very strong. There is also immense growth potential here. For 2024-25, real GDP growth is estimated at 6.6 percent and 6.9 per cent for the first quarter of 2025-26. According to the Reserve Bank of India (RBI), growth may go up to 7.3 per cent in the June quarter next financial year. Experts believe that the direction of the global economy will also depend heavily on the policies of Trump, who will take over as US President on January 20.

India's economy has a bright future.
Aditi Nair, Chief Economist, ICRA, says that amid growing uncertainty globally, geopolitical tensions, and tariff risks, the economic outlook for the Indian economy looks quite bright. He said, "The upcoming Union Budget for the financial year 2026 will also decide the direction of the economy. It will give a better glimpse of the government's policies. However, the rupee may remain in the headlines like last month.

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