According to a finance ministry report released on Thursday, India’s economic momentum is robust despite a mixed monsoon. The Monthly Economic Review for July confirms that the forecasted real GDP growth of 6.5-7% for FY25 is on track.
The report highlights increased Goods and Services Tax (GST) collections, driven by a broader tax base and heightened economic activity. Positive trends are noted in manufacturing and services, supported by rising demand and export orders.
Retail inflation fell to 3.5% in July, the lowest since September 2019, due to moderated food inflation and improved reservoir levels aiding crop production. Fiscal consolidation is supported by strong revenue and capital expenditure, boosting private investment.
Overall, tax collections, bank credit, and foreign direct investment are strong, with stable stock markets and improving exports, reinforcing the GDP growth forecast.
