The Indian economy could grow by more than 7% in the current fiscal year, possibly closer to 7.5%, owing to a regular monsoon and reduced electoral uncertainty. Based on the momentum in high-frequency indicators, a normalized monsoon, a relatively benign global outlook, and reduced electoral uncertainty, growth in India and the rest of the globe is expected to be higher than 7%, and possibly closer to 7.5%.
The Union Budget 2024-25 met the expectations of unshakable commitment to fiscal consolidation, prudence, and quality.
The fiscal deficit target for 2024-25 has been set at 4.9% of GDP, with capital expenditure at 2.4% of GDP. The short- to medium-term growth strategy is built around six major areas: private sector capital formation, green transition financing, MSME development, agricultural transformation, education and skill development, and increased state capacity.
The Union Budget for Fiscal Year 2024-25 prioritized fiscal prudence and capex. Nominal GDP is expected to rise by 10.5% in FY2024-25, while the fiscal deficit is budgeted at 4.9% of GDP.