India's Economic Outlook: Dun & Bradstreet's January 2025 Analysis

Dun & Bradstreet's Economy Observer report highlights India's economic challenges, noting a cyclical downturn in FY2024-25, with GDP growth projected at 6.4%. Key challenges include slower mining and manufacturing, high inflation, depreciating currency, and macroprudential tightening. Government measures to boost spending and investment are expected in the second half.

In its latest Economy Observer report, Dun & Bradstreet identifies a cyclical downturn in India's economy during the first half of FY2024-25. With GDP growth projected at 6.4%, the report notes this slowdown is driven by reduced public expenditure during election season, macroprudential tightening, and declining private consumption.

Dr. Arun Singh, Global Chief Economist at Dun & Bradstreet, emphasized the importance of government measures in the second half to stimulate growth through increased capital expenditure and enhanced rural programs. Stable bond yields and an improving fiscal deficit are expected to bolster economic resilience amidst global challenges.

Additional insights reveal pressures such as rising inflation and a depreciating rupee. The forecast highlights inflating input costs and reduced bank credit growth, tempered by cautiously optimistic monetary policy. An upcoming budget is anticipated to address these macroeconomic hurdles.

(With inputs from agencies.)