Budget 2025

In recent weeks, the Indian stock market has experienced a slowdown, with the Nifty 50 index declining by approximately 7% since September. This downturn coincides with a deceleration in GDP growth, which fell to 5.4% year-on-year in the July-September quarter, marking the weakest performance in nearly two years. Contributing factors include lower-than-expected government spending, a slowdown in consumption—particularly domestic private consumption, which drives nearly 70% of India’s GDP —and public frustration over high taxes. Given these challenges, there is anticipation that the government may introduce significant measures to support the middle class. The Reserve Bank of India has already taken steps by reducing the cash reserve ratio to ease monetary conditions. Additionally, sustained government spending on infrastructure is expected to stimulate economic activity and investment. However, global factors continue to pose risks to India’s growth and inflation outlook. As the situation evolves, it remains to be seen what specific actions will be taken to address these economic concerns.