Is India poised for a remarkable 6.7% GDP growth next fiscal?

India is expected to see a GDP growth improvement to 6.7% in fiscal year 2025, as reported by Crisil Intelligence. This growth projection is based on several supportive factors such as anticipated rate cuts from the Reserve Bank of India, lower crude oil prices, and the expectation of a normal monsoon season. The report indicates that the previous fiscal year saw a significant decrease in growth, down from 8.2% to an estimated 6.4%. Inflation rates are also trending positively toward the RBI’s 4% target, with a decline in food inflation and stable non-food inflation. Recent data from December showed CPI inflation cooling to 5.2%, compared to 5.5% in November. Meanwhile, food inflation also saw a reduction from 9% in November to 8.4% in December, while non-food inflation remained steady at 3.1%. The report indicates optimism for agricultural growth in India due to higher reservoir levels, which are expected to facilitate better rabi crop output. This anticipated increase in agricultural production could positively impact farm incomes and rural consumption which, in turn, might alleviate food inflation pressures in the coming months. Consequently, enhanced agricultural yields are likely to increase discretionary consumption among the population. Additionally, the Index of Industrial Production (IIP) rose to 5.2% in November, reflecting improved manufacturing performance, particularly in investment goods and consumer durables. This rise, alongside favorable inflation trends, paints an overall positive outlook for India's economic growth moving forward.