India's economy is expected to leave its recession behind in 2025. The government and experts believe that the growth rate will improve next year. The main reason for this is strong festive activity and increased rural demand. However, GDP growth declined to 5.4 percent in the July-September quarter of last year, which Union Finance Minister Nirmala Sitharaman has described as a "temporary setback".

Positive signs and economic recovery

There are signs of improvement in India's economic condition, especially from high frequency indicators. Reserve Bank economists believe that the recovery is on the way. The Indian economy is expected to grow by 6.6 percent in the next year. With this, it can increase to 6.9 percent in the first quarter of 2025.

Inflation and interest rate cuts expected

The challenge is to control inflation along with growth. The Reserve Bank of India (RBI) is expected to cut interest rates in 2025. Experts say that changes in the Reserve Bank's policy can further boost economic recovery. During the central bank meeting in February, headed by the new governor Sanjay Malhotra, important decisions may be taken for the economy.

Global crisis and domestic scenario

Global political crises, especially after Donald Trump became the US President, can have an impact on the Indian economy. Experts believe that India will have to face economic challenges from abroad, but the domestic economy is in a strong position.

Role of private sector

In the coming times, the private sector will also have to increase its investment and expenditure. Keeping in mind the global instability and inflation, there are possibilities in India's economic scenario, but challenges will also remain.

Fiscal policy and the future

The Government of India is committed to working with financial prudence. New fiscal measures may be announced in the budget for the financial year 2025-26. The central government aims to keep the fiscal deficit below 4.5 percent.

It is worth noting that there are expectations of growth for India's economy in 2025, but for this domestic and global challenges will have to be dealt with. Controlling inflation, reducing interest rates and promoting private investment will be important steps.