Economic Growth Projections
Moody’s Analytics projects a slight decline in India's economic growth, reducing from 6.6% in 2024 to 6.4% in 2025, and estimates subsequent growth figures of 6.6% in 2026 and 6.7% in 2027.
Regional and Global Context
- Economic growth in the Asia-Pacific region is anticipated to slow down due to trade tensions and policy shifts.
- The United States has implemented reciprocal tariffs on countries with higher import duties.
- Global GDP growth is expected to decrease from 4% in 2024 to 3.7% in 2025, and further to 3.5% in 2026.
India's Economic Indicators
- India's growth is nearly 2% below its pre-pandemic trajectory, yet showing signs of recovery.
- China lags by about 1.2% from its pre-pandemic trend, whereas the US is largely aligned with its pre-pandemic growth path, potentially slightly exceeding it.
Inflation and Unemployment
- Inflation in India is forecasted to decrease from 4.9% in 2024 to 4.7% in 2025, and further to 4.1% in 2026.
- The unemployment rate is expected to rise from 6.5% in 2024 to 6.7% in 2025 and then to 7% in 2026.
