- GDP Growth Projections:
- Expected to slow down to 6.5%-7% in FY 2024-25, down from previous years.
- RBI revised full-year growth forecast to 6.6% from 7.2%.
- Slower Government Capital Expenditures:
- Government spending on infrastructure is slower than anticipated, affecting economic momentum.
- Delayed capital expenditures impact long-term growth prospects.
- Higher Interest Rates & Tightened Lending:
- Increased interest rates by RBI to combat inflation, leading to higher borrowing costs.
- Reduced lending impacts sectors like real estate, consumer goods, and corporate investment.
- Private Sector Investment Hesitation:
- Private corporate sector has not fully recovered, with slower investment growth.
- Business confidence remains low due to economic uncertainties.
- Government-led Growth:
- Future growth largely driven by capital expenditure in government infrastructure projects and household investments.
- Fast-tracking infrastructure projects is crucial for sustaining growth.
