India's GDP Growth to Slow to 6.4% in 2025: Key Factors and Outlook
| Key Aspect | Details |
|---|---|
| Why in News? | Moody's Analytics projects India's GDP growth to slow to 6.4% in 2025, down from 6.6% in 2024, due to global trade tensions and weakening exports. |
| Projected Growth | 6.4% in 2025 (Moody's Analytics forecast) |
| Key Reasons for Slowdown | New U.S. tariffs, declining global demand, Asia-Pacific slowdown, weakening rupee, foreign investment concerns, inflation volatility. |
| China's GDP Forecast | Expected to decline from 5% in 2024 to 4.2% in 2025, impacting regional growth. |
| Global Growth Outlook | The UN forecasts global GDP growth at 2.8% in 2025, with slower growth in major economies like the U.S. and China. |
| Government Response | Union Budget focus on domestic demand, fiscal deficit target below 4.5% of GDP, policy reforms in monetary and trade sectors. |
| Long-Term Outlook | India remains one of the fastest-growing economies, with growth supported by private consumption, investment, and policy measures. |