In India, economic momentum has outpaced geopolitical gravity. There’s more to be done
In India, economic growth has continued to outpace geopolitical concerns, defying predictions of a sharp slowdown. The surge in investments linked to AI infrastructure, particularly in the US, has become a key growth engine, with AI-related investments accounting for a significant share of private capital expenditure. This has created powerful multiplier effects across sectors and geographies, benefiting economies supplying critical inputs to this investment cycle.
Despite disruptions to energy infrastructure, crude oil prices have remained relatively muted, with global demand remaining softer than expected and cushioned by countries drawing down strategic reserves. India's GDP growth is expected to average about 7 per cent this fiscal year, with robust activity in the first half and moderation in the second half due to the lagged effects of earlier disruptions and fresh headwinds.
Household demand has remained supported, with public-sector investment, strong goods exports, double-digit credit expansion, and resilient demand for consumer durables contributing to economic momentum.
Brief written by urgent.news from The Indian Express's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
