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Indian tourists and kashmir goes near the clock tower (Ghanta Ghar) in Srinaria, Jammu and Kashmir, May 28, 2025.
Firdous Nazir | Nurphoto | Gets the image
India’s economy has expanded from faster than expected, an annual rate of 7.4% in the quarter ended in March, despite the intensification of world economic uncertainty.
Print for the gross domestic product of the fourth quarter of the 2025 government financial year grew higher than the growth forecast of 6.7% economists in the Reuters poll.
This noted the strongest quarterly growth in the financial year of 2025, reports Government data published on Friday.
India’s economy increased by 6.5% in full financial 2025, according to Government’s assessment in February.
The growth forecast in the third largest economy of Asia remains relatively reliable, due to its strong domestic consumption and relatively less dependent on export, strike on the wrong trade policy of the US President Donald Trump.
Trump slammed the so -called “mutual” Tariffs on 26% on goods imported from India as part of broader trading measures in the US only to reduce them up to 10% for 90 days ending in July to allow negotiations on transactions.
The White House resorts to the Protective Trade Policy to resolve the trade imbalance. India Spent nearly $ 46 billion Excess with the United States in 2024, according to state data.
New Delhi can be as follows in line to conclude from the US by following Washington’s agreements with China and UK Trump Reportedly said earlier this month What India offered zero tariffs for all US imports.
Monetary policy
India’s economy benefits from India’s reserve bank steps to relax the monetary policy. The Central Bank reduced its interest rates last month for the second consecutive time to 6% and moved its position to proceeding, trying to strengthen the growth. The Central Bank is expected to provide another rate in June.
“Inflation drop, insufficient growth risk to push another rap rate, said Shylan Shah, deputy chief economist who are developing in the capital economy, predicting that the rap rate will fall to 5.5% in the current weakening cycle.
The market’s concern was the result of tensions between India and neighboring Pakistan, which carried out hostilities earlier this month. Shah said Shah.
Given this, the history of India’s growth can still pass, partly helping to improve consumer demand in rural areas. Consumption has made more than half of the Indian economy and the countryside is Almost 40% of total sales of folk goods In the first quarter of 2025, data from the Nielseniq market study showed.
International projects of foreign exchange funds in India will reach 4.187 trillion. Dollars in 2025, which modestly distracts $ 4,186 and possibly potentially What makes it the fourth largest economy in the world.
“India has always been going to overtake Japan – as well as Germany – given its positive demographics and volume for a constant increase in productivity,” said Shah, adding that “it was not stretching that by 2040 the Indian economy could become the size of Germany and Japan (economics).”
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