India’s GDP growth projection for FY25 set to hit 7%
India is on course to achieve gross domestic product (GDP) growth of 7% for FY25 (2024-2025), according to the Asian Development Bank (ADB).
It cited robust expansion in the industrial sector and strong demand in construction led by the housing market.
“The stronger-than-expected fiscal position of the central government could provide a further boost to growth. However, this must be weighed against downside risks arising from weather events and geopolitical shocks,” said ADB.
“Bank credit is fuelling robust housing demand and improving private investment demand. However, export growth will continue to be led by services, with merchandise exports showing relatively weaker growth,” the bank’s report stated.
The ADB’s projection is supported by the International Monetary Fund (IMF), which has raised its India’s GDP growth projection for FY25 by 20 basis points to 7% in its update to the World Economic Outlook. The IMF pointed to a boost in private consumption, especially in rural areas.
For FY26, ADB maintained India’s GDP growth projection at 7.2%, as it forecast in its April outlook.
India’s GDP expanded at 8.2% in FY24, higher than 7% recorded in FY23, boosted by a greater-than-expected expansion of 7.8% in the fourth quarter, according to the provisional estimates released by the National Statistical Office.
The Reserve Bank of India (RBI) has projected the economy will grow at 7.2% in FY25, with India “at the threshold of a major structural shift” in its growth trajectory, said RBI Governor Shaktikanta Das. The country is moving towards a path where annual GDP growth of 8% can be sustained, he said.
IMF Chief Economist Pierre-Olivier Gourinchas said Asia’s emerging market economies remained the main engine for the global economy.
“Growth in India and China is revised upwards and accounts for almost half of global growth. Yet prospects for the next five years remain weak, largely because of waning momentum in emerging Asia,” Gourinchas said.
The IMF has also predicted the global inflation rate will slow to 5.9% in 2024 from 6.7% in 2023.
“The good news is that, as headline shocks receded, inflation came down without a recession. The bad news is that energy and food price inflation are now almost back to pre-pandemic levels in many countries, while overall inflation is not,” Gourinchas added.
The Asian Development Bank slightly raised its growth forecast for Asia and the Pacific for 2024 to 5%, up from a previous projection of 4.9%, as rising regional exports complement resilient domestic demand. Its growth outlook for 2025 for the wider region is steady at 4.9%.
Gig economy workers must hone technical skills
Around 80% of gig workers meet employment requirements in India, but need to be skilled in technical skills for achieving success in the longer term, according to a recent report released by Teamlease Edtech.
According to the study, called ‘Gig Economy Skills: Equipping Youth for Freelance and Flexible Work’, while around 76% of employers identified technical skills as the most essential for gig workers, communication skills closely followed, with almost 69% of respondents emphasising the importance of remote collaboration and meeting client expectations.
In terms of experience, the study revealed a preference for gig workers with one to five years’ experience among 68% of employers, indicating a desire for fresh perspectives balanced with practical know-how.
Other key trends identified in the report included:
- 76% of employers identify technical skills as the most essential for gig workers.
- 69% of respondents emphasise the importance of communication skills.
- More than 90% of respondents stress the importance of digital proficiency.
- On-the-job training (76%) and online courses (74%) emerge as the most preferred methods for gig workers to enhance their skills.
- The most common skill gaps in new gig workers include industry-specific knowledge and soft skills.
