The Indian economy is likely to grow at 6.5 per cent in the fiscal year starting April 1, EY Economy Watch said, emphasising that a well-calibrated fiscal strategy that supports human capital development while maintaining fiscal prudence could significantly enhance long-term growth prospects.
The March edition of EY Economy Watch projects India's real GDP growth at 6.4 per cent in FY25 (April 2024 to March 2025 fiscal year). For the next, it projects 6.5 per cent growth, highlighting the need to realign fiscal policy to support the country's journey toward Viksit Bharat.
According to revised national accounts data released by NSO last month, real GDP growth rates for FY23 to FY25 are now estimated at 7.6 per cent, 9.2 per cent and 6.5 per cent.
With respect to quarterly growth rates for FY25, the third quarter growth is estimated at 6.2 per cent implying a required growth of 7.6 per cent in the fourth quarter to deliver an annual GDP growth of 6.5 per cent estimated by NSO.
"A 7.6