Near term Macro outlook for India

- **GDP Growth**: India's economy grew at around 7% pre-COVID, but recent figures show a slowdown to 5.4% in Q2 FY25, highlighting challenges like weak consumer demand and high inflation. - **Inflation**: Inflation has been a concern, sometimes exceeding 6%, affecting economic stability and consumer spending. - **Unemployment**: Despite growth, unemployment remains significant, especially in rural areas and among the youth, necessitating labor market reforms. - **Fiscal Policy**: The government is on a path of fiscal consolidation, aiming to reduce the fiscal deficit, with expectations of continued discipline. - **Monetary Policy**: The RBI's focus on inflation targeting might lead to potential credit rating upgrades if successful, with increasing foreign investment interest in Indian bonds. - **Structural Challenges**: Issues like uneven economic growth, infrastructure deficits, and the need for investment in sectors like manufacturing are critical for sustained growth. India's economic outlook remains optimistic, with projections of 6.5% GDP growth in FY25, driven by domestic demand, government spending, and potential policy reforms to enhance productivity and employment.