Rising confidence to fuel Indian economy

RBI's FSR pegs real GDP growth for the current fiscal year at 6.6%

- Gopika Gopakumar

Prospects for the Indian economy are expected to improve in 2025 thanks to high consumer and business confidence, Reserve Bank of India (RBI) governor Sanjay Malhotra said in his foreword to the Financial Stability Report, which pegged the real GDP growth for the current fiscal year at 6.6%.

In the bi-annual report released on Monday, Malhotra said that despite global uncertainties, the Indian economy is expected to pick up in the second half of the current fiscal. "Notwithstanding the uncertainties shrouding the global macro-financial ethos as it unfolds, prospects for the Indian economy are expected to improve after the slowdown in the pace of economic activity in the first half of 2024-25," said Malhotra, who took over as the central bank's 26th governor earlier this month.