‘India’s economy to grow at 6.4% in FY25’

New Delhi: Industry body FICCI on Thursday lowered India’s growth projection for the current financial year to 6.4 per cent from 7 per cent estimated earlier. According to FICCI’s Economic Outlook Survey, the revised projection is in line with the broad expectations and reflect a notable slowdown vis-à-vis 8.2 per cent GDP growth recorded in 2023-24.

“...FICCI’s Economic Outlook Survey projects an annual median GDP growth forecast of 6.4 per cent for 2024-25. The forecast in the current survey marks a moderation from 7.0 per cent estimate (for FY25) put out in the previous round conducted during the month of September last year,” it said.

The survey was conducted in December 2024 and drew responses from leading economists representing industry, banking and financial services sector. The participating economists observed global economy in 2025 to present a reasonable growth trajectory, with an underlying note of caution.

Sharing their perspective on the expected impact of US President Donald Trump’s policies on the Indian economy, the economists indicated the possibility of short-term disruptions through channels like exports, foreign capital flows, and input costs for the US trading partners including India.

The likelihood of tax cuts (personal and business) could inflate the US fiscal deficit, while higher tariffs and stricter immigration norms could push up labour costs and inflation, they observed.