HomeEconomyThe most populous country in the world, India is also one of...

The most populous country in the world, India is also one of the most dynamic economies (even if its growth slows down)

The most populous country on the planet has one of the strongest economic growths in the world.

India’s GDP increased 6.5% during fiscal year 2024/2025 completed in March, according to official figures published on Friday, May 30, a net deceleration compared to 9% of the previous fiscal year. The most populous country on the planet, with 1.4 billion inhabitants, remains one of the most efficient in the world, even if its economic growth is no longer so strong.

The 2024/2025 is slightly higher than the forecasts in the market that were 6.3%. It was favored by the first quarter of the January-March calendar year, exceeding the expectations of the set sets.

Last year, Indian economic activity was affected by the slightest dynamism of the manufacturing sector, the consumption of the urban population, the mast media and monetary policy. However, he has experienced a rebound in the last two quarters, helped by agricultural yields. But ultimately, it is likely that the customs surcharge imposed by the administration of US President Donald Trump is heavy.

A general fall in income tax for relaunch consumption

During the quarter of 2025, GDP experienced a 7.4% growth in the annual change, the largest in the fiscal fiscal year and stronger than the 6.2% increase in the previous quarter, even more than a year. The National Statistics Office emphasized in a press release that the growth of the quarter of March was promoted by the boom construction sector.

Although India is always the great economy with the fastest growth, it has shown signs of weakness by remaining below 8%. It is this figure that New Delhi must reach to create enough well -paid jobs and generate economic prosperity, according to experts.

The deceleration in economic activity in last year has led to the government of Prime Minister Naretra Modi to announce general reductions in progressive income tax, particularly destined for the middle class, to stimulate a weighted economic activity, particularly due to the consumption sustained in the cities.

Author: SB with AFP
Source: BFM TV

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