According to a FinMin assessment, the Indian economy will expand by about 6.5% in FY25 due to global causes, with GDP rebounding in the second half.

The Indian economy is expected to expand by roughly 6.5% in FY25, with a rebound in GDP in the second half. India is predicted by the FinMin report to grow at about 6.5% in the fiscal year 2024–2025, which is closer to the lower end of its 6.5%–7% forecast. The government stated this on Thursday, citing the threat that global uncertainties represent to domestic economy.

According to the finance ministry's monthly economic report for November, the growth outlook for October through December seems promising, with urban demand increasing in the first two months of the quarter and rural demand continuing strong.

Due to slower development in manufacturing and consumption, India's economic growth slowed more than anticipated from July to September. Despite a difficult climate, India has maintained that its economy will develop at a world-beating pace of 6.5% to 7%.

It stated that compared to the first half of the fiscal year, India's growth prospects are anticipated to improve from October to March.

"The combination of monetary policy stance and macroprudential measures by the central bank may have contributed to the demand slowdown," said the research.

For eleven consecutive policy meetings, India's central bank has maintained interest rates at their current level, despite calls for rate reduction to boost growth in the face of increasing