Key Economic Developments in India (May 2025)
1. Robust Growth Projections
India’s economy is projected to grow between 6.2% and 6.8% in FY2025-26, driven by domestic demand, rural recovery, and infrastructure investments. Key forecasts include:
- Deloitte: 6.6% growth, balancing tax incentives and global trade uncertainties811.
- IMF: 6.2% growth in 2025, citing resilient domestic activity despite global challenges6.
- Finance Ministry: Expects growth closer to 6.5%, surpassing IMF projections13.
2. Inflation and Policy Measures
- Inflation has eased to below target levels, with rural-urban disparities narrowing12.
- The government prioritizes food price stabilization and fiscal stimulus to sustain consumption317.
3. Trade and Geopolitical Challenges
- A trade suspension with Pakistan since late April 2025 (extending into May) has impacted cross-border commerce19.
- Global agencies warn of risks from geopolitical tensions and export competition in semiconductors10.
4. Sector-Specific Trends
- Services Sector: PMI rose to 59.0 in March 2025, signaling strong expansion20.
- Manufacturing: Growth remains subdued due to weaker global demand and supply chain adjustments15.
5. Long-Term Goals
India aims to become a $5 trillion economy by 2025-26, focusing on infrastructure upgrades and digital transformation1418.
Sources reflect developments reported up to early 5 May 2025 hindi current affairs.