Government report projects robust FY25 growth amid strong consumption and tax reforms

India’s economic outlook for FY2025 remains upbeat, supported by resilient domestic demand and recent consumption-tax reductions. A government report emphasized broad-based expansion across manufacturing and services despite global trade frictions. Export diversification efforts are accelerating as 55 percent of shipments face U.S. tariff exposure, prompting deeper regional linkages within Asia and Africa. Economists expect GDP growth above 7 percent if fiscal spending sustains and monsoon trends remain normal. Officials highlighted continued capex momentum as the key driver of medium-term employment and income growth.