OECD Raises India's GDP Growth Forecast for FY25 to 6.8%
| Why in News | Key Points |
|---|---|
| OECD raised India's GDP growth forecast for FY25 to 6.8% | - Up from 6.7% to 6.8% for FY25. - Growth driven by public infrastructure spending, private consumption, and agricultural recovery. - Public investment and rural income are key contributors. |
| Strong private consumption and investment driving GDP growth | - Private consumption is growing robustly. - Public infrastructure spending is accelerating. - Investment in public and private sectors fueling growth. |
| OECD highlights the need for structural shifts in labor supply | - Focus on improving educational attainment and shifting from agricultural employment. - Increased youth and female labor force participation required for sustained growth. |
| India's export growth outlook affected by global tensions | - Slight increase in export growth projected. - Ongoing global tensions may weaken export prospects. |
| Inflation expected to ease, creating room for monetary easing | - Inflation to decrease, which could allow for easier monetary policy. |
| Macroeconomic risks from global environment and commodity prices | - Risks include a weaker global economy and higher commodity import prices. - Geopolitical tensions and protectionism may also harm growth. |