An Ernst & Young (EY) report indicates that India’s GDP growth for FY25 may exceed 7% if bolstered by strong government investment and effective inflation control. The Reserve Bank of India (RBI) is cautious about monetary policy due to rising inflation, which recorded a CPI of 5.5% in September 2024. Despite expectations of 7.2% GDP growth, a significant risk arises from a 19.5% decline in government investment. High-frequency data show a slowdown in economic momentum, impacting manufacturing and services sectors. The IMF projects a gradual decline in India’s GDP growth from 8.2% in FY24 to 6.5% in FY26.