The food subsidy has been the largest component of the government's total subsidy expenditure so far in the financial year 2024-25, accounting for more than 50 per cent of the total amount disbursed.
The Reserve Bank of India (RBI) is expected to maintain its policy rate during its upcoming meeting next week, as GDP growth slowed significantly in the second quarter of FY25. However, the likelihood of a rate cut in February has increased, according to a report by HDFC Bank.
After a challenging first half of financial year (FY) 2025, the corporate earnings outlook is likely to improve in the second half as the government spending, robust Kharif crop and improving rural demand is set to revive, Motilal Oswal said in a report.
The rural demand and government spending will be key drivers of India's economic growth in the second half of the current financial year (October-March FY25), according to a report by ICICI Bank.
This significant rise in public healthcare investment marks a pivotal shift in India's healthcare system, with government spending overtaking private out-of-pocket expenditure for the first time in the country's history.
The improved performance is attributed to multiple factors, including higher government spending on infrastructure and welfare programmes, better agricultural output, and effective marketing strategies tailored to regional needs.
The services sector is expected to be the primary driver of GDP growth in Q1 FY25. Despite reduced government spending ahead of the elections, which is likely to dampen growth in some service sectors, financial, real estate, and professional services are expected to have performed well.
The Rural economy of India has emerged as a significant driver of economic growth, outpacing urban areas largely due to increased government spending in the recent quarters, highlighted a report by Anand Rathi, a financial service company.
Fitch projects a moderation in global growth for 2025 to 2.4 per cent as US economic expansion decelerates to a below-trend rate of 1.5 per cent, and China's growth slows further to 4.5 per cent due to declining exports and reduced government spending. Meanwhile, the eurozone is forecasted t
This transfer, coupled with the subsequent government spending, will bolster the central government's fiscal position, enabling potential additional spending or fiscal consolidation.
S&P Global Ratings on Wednesday revised its rating outlook on India to positive from stable, and added that it expects continuity in economic reforms and fiscal policies regardless of the Lok Sabha election outcome.