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'India needs monetary, fiscal policy changes'
Mint Mumbai
|January 30, 2025
India needs to change its fiscal and monetary policy to achieve a 6.4% gross domestic product (GDP) growth in 2025 amid a weak rupee, declining foreign investment and volatile inflation, Moody's Analytics said on Wednesday.
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Moody's Analytics said it expects the 2025-26 Union budget to support domestic demand, particularly investment while aiming for a fiscal deficit of less than 4.5% of GDP for the next fiscal. In 2023-24, the fiscal deficit was 5.6% of GDP, which is estimated to come down to 4.9% in the current fiscal. "India is facing a bumpy road in 2025. A weakening rupee, declining foreign investment, and volatile inflation are the areas of greatest economic risk. Changes in fiscal and monetary policy, likely in the first half of the y
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