India’s robust economic growth, topping major economies at 8.2% last fiscal year, is expected to ease to 7.0% and 6.7% in the current and next fiscal years, respectively. Despite the ruling BJP losing its parliamentary majority, economic policies are likely to remain stable, focusing on government capital spending. Economists foresee no major reforms to enhance growth amid subdued private expenditure and lingering employment challenges. The Reserve Bank of India anticipates growth close to 7.2%, potentially aided by fiscal measures and a planned reduction in personal tax rates to bolster consumption.
India’s Economic Growth Outlook Moderates Post-Election Upset
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