Indian tourists and Cashmeres walk near the Hour Tower (Gant Gar) in Srinagar, Jamo and Kashmir, on May 28, 2025.
Nazir Al -Hara Norfuto Gety pictures
The Indian economy expanded at an annual rate faster than expected 7.4 % in the quarter ending in March, although global economic uncertainty is stabilized.
The print of the gross domestic product for the fourth quarter of the government fiscal year 2025 was sharply higher than the growth expectations of 6.7 % by economists in the Reuters poll.
This represents the strongest quarterly growth in the fiscal year for the year 2025, according to L. Government data issued on Friday.
India’s economy expanded by 6.5 % in the full fiscal year 2025, in line with The government’s appreciation February.
The growth forecast remained in the third largest economy in Asia relatively strong, thanks to strong local consumption and relatively less dependence on exports, which led to a blow from the wrong trade policy of US President Donald Trump.
Trump last month slapped the so -called “mutual” 26 % definitions On the goods imported from India as part of the broader US trade measures, only to reduce them to 10 % 90 days It ends in July to allow the deal negotiations.
The White House was resorting to protective trade policies to address commercial imbalances. India Nearly $ 46 billion ran A surplus with the United States in 2024, according to government data.
New Delhi can be in a deal with the United States, after Washington’s agreements with China and the United Kingdom Trump According to what was reported, he said earlier this month India has offered zero rows on all American imports.
Monetary
The Indian economy benefits the steps of the India Reserve Bank to relax on money policies. The central bank reduced interest rates last month for a second consecutive period to 6 % and its position turned into an attempt to enhance growth. The central bank is expected to provide another discount in June.
“Low inflation and negative risks to growth to achieve another reduction to the ribo rate next week,” said Sheilan Shah, Vice President of Emerging Markets at Capital Economics, said.
The market concerns were left on the arriving tensions between India and neighboring Pakistan, which conducted military measures earlier this month. Shah said that the ceasefire in the disputed area in Kashmir is “fragile and can easily link tensions again”, which in turn may hinder investment and consumption.
However, the growth story in India can still correspond, in part that helped improve the demand for consumers in rural areas. Consumption contributed more than half of the India economy, as it represents rural areas Almost 40 % of the total consumer sales In the first quarter of 2025, market research data showed Nielseniq.
The International International Monetary Fund projects will reach the Indian economy to $ 4.187 trillion in 2025, as it modestly exceeded 4.186 trillion dollars, perhaps Japan and perhaps This makes it the fourth largest economy in the world.
“India has always surpassed Japan – as well as Germany – given the positive population composition and its scope to achieve continuous productivity gains,” said Shah.
Subscribe now
https://image.cnbcfm.com/api/v1/image/108152297-1748586152842-gettyimages-2216880062-nazir-notitle250528_npqyf.jpeg?v=1748586173&w=1920&h=1080
Source link