WHAT INVESTORS CAN LOOK FORWARD TO IN 2025

Investing is all about understanding the tailwinds and headwinds.

- RAJAS KELKAR

Your flight to financial prosperity depends on your ability to understand the impact of these conditions. You may choose not to dive deep and rely on professionals to figure it out. Those who manage your money carefully analyze the financial market situation. Since today's prices are a function of tomorrow's profits, all numbers that could influence future profit growth are crunched. From the analysis thus far, the picture is a bit hazy for your investments in 2025.

Inflation and interest rates The macroeconomic data shows India's economic growth is slowing, and inflation is stubbornly high. Analysts are revising growth estimates downwards for the financial year 2024-25, and inflation estimates upwards. Food inflation refuses to remain in check. The Reserve Bank of India's monetary policy committee will likely be under intense pressure from the government in 2025 to bring down borrowing rates. The government and the RBI may have differing views on the issue. The government may want RBI to lower borrowing rates to stimulate growth. However, the RBI committee will likely continue inflation targeting to ensure India's economy is not overheated.