Prime Minister Narendra Modi is going to speak with experts about the economy on Tuesday. This meeting comes just before his government’s first complete budget for its third term, expected to be shared on February 1. Finance Minister Nirmala Sitharaman had presented the last budget for the year 2024 in July when Modi’s government won its third term.
This meeting is important because there are concerns about India’s slowing economy and reduced spending by people. The economy grew only 5.4% in the last quarter, which is the lowest growth in over two years. People are eager to see if the budget will include ideas to boost growth, encourage spending, and incentivize private businesses to invest.
The budget will also be monitored for any actions in response to former U.S. President Donald Trump, especially since he might impose new tariffs on countries like India. This situation has led many experts to lower their growth forecasts for India. For example, the Asian Development Bank has reduced its growth expectation for India in 2025 from 7% to 6.5%, and Goldman Sachs has revised its figure from 6.5% to 6.4%.
Despite a strong growth of 8.2% in 2024, high retail inflation means that the Reserve Bank of India is unlikely to lower interest rates to stimulate the economy. HDFC Bank noted that India’s future economic outlook is a mix of hope and uncertainty, with macroeconomic fundamentals appearing strong but facing unpredictable global challenges.
Sitharaman has already talked to key players, including economists and business groups, about the budget. While the upcoming budget will be a main focus of Modi’s meeting with economists, long-term strategies needed to make India a developed nation as per the Prime Minister’s vision might also be discussed
Leave a Reply