• UGI USER
  • May 07, 2024
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INDIA RATINGS RAISES FY25 GDP GROWTH VIEW TO 7.1%

Why in the news?

India Ratings revises FY25 GDP growth forecast to 7.1% from 6.5%, citing strong government spending and improved corporate balance sheets.

About the Upgraded Growth Projection:

• India Ratings and Research revised FY25 GDP growth forecast to 7.1% from 6.5%.
• The upgrade is attributed to strong government capital expenditure and improved corporate and bank balance sheets supporting growth momentum.
• Private consumption spending anticipated to surge at a three-year high of 7%, up from 3% last year.
• Optimistic outlook driven by favourable monsoon predictions, expected to bolster weak rural consumption trends.

What is Capital Expenditure in India(Capex)?

● Capital Expenditure (Capex) in India refers to funds allocated for acquiring, constructing, or improving physical assets like infrastructure and machinery.
● It enhances productivity, economic growth, and generates future income and employment.
● The Indian government allocates Capex through annual budgets presented by the finance minister.
● Recent data shows a consecutive three-year increase, reaching Rs 10 lakh crore, or 3.3% of GDP, with a notable 33% growth (Union Budget 2023-24).
Note:https://universalinstitutions.com/fy24-new-private-investments-dip-15-states-lead-capex-rise/