Navigating Economic Uncertainties: India's Path Ahead

India's GDP growth moderated to 5.4% in Q2 FY25. The outlook for H2 FY25 is positive, with high frequency indicators showing promise. Economic stakeholders must commit to sustaining growth amid global uncertainties. The farm sector's positive outlook may help alleviate food price pressures.

India's GDP growth rate has seen a moderation to 5.4% in the second quarter of FY25. The latest finance ministry report highlights that sustaining growth requires a deeper commitment from economic stakeholders as global factors introduce new uncertainties.

Despite the slowdown in Q2, the outlook for the third quarter appears brighter, bolstered by high-frequency indicators. Economic activities, particularly industrial, are projected to pick up due to supportive measures like an increased Minimum Support Price for rabi crops and favorable reservoir levels.

Heading into the latter half of FY25, the report emphasizes potential challenges and opportunities. While structural slowdown factors exist, eased monetary policies and positive farm sector projections offer room for optimism. Global conditions, exchange rates, and domestic demand dynamics will be pivotal in shaping the economic landscape.

(With inputs from agencies.)