The Indian economy is poised to grow at 7.0 per cent in the current fiscal 2025-26, Crisil said as it raised projections by 50 basis points soon after the country registered robust growth in the first half.
As the base effect on food fades, headline Consumer Price Index or retail inflation is likely to edge up slightly to average at 2.5 per cent this financial year 2025-26, Crisil has asserted.
The Indian economy is expected to grow at 7 per cent in the current fiscal 2025-26, and subsequently moderate to 6.7 per cent in the next, Dharmakirti Joshi, Chief Economist, CRISIL Limited, told ANI in an exclusive interview.
While retaining its position as the fastest-growing large economy, India's real gross domestic product (GDP) growth will moderate to 6.8 per cent in fiscal 2025 from 8.2 per cent in fiscal 2024, CRISIL observed in its recent report, citing high interest rates and lower fiscal impulse.
On the domestic front, the peak impact of the rate hikes -- 250 basis points since May 2022, which has pushed interest rates above pre-Covid-19 levels -- will play out in fiscal 2024, according to a statement of CRISIL.