NEW DELHI (Reuters) -The Indian government’s economic report, coming a day ahead of the annual budget, is likely to project GDP growth of 6.3%-6.8% in 2025-26, according to two sources familiar with the matter.
The forecast suggests economic conditions will remain sluggish next year. Growth is expected to slip to 6.4% in the current financial year – the slowest in four years – from 8.2% last year.
The economic survey will be released later on Friday.
A spokesperson for the finance ministry did not immediately respond to an email from Reuters.
Early economic growth projections have a patchy record of accuracy. However, this year’s growth estimate of 6.4% lands close to India’s Chief Economic Adviser V. Anantha Nageswaran’s and his team’s initial projection of 6.5%-7%.
Prime Minister Narendra Modi, in his third term’s first full budget, is likely to provide policy boost for the world’s fifth-largest economy where high prices and tepid wage growth have crimped spending power in a blow to consumption.
Economists expect policy changes aimed at strengthening consumption and tariff cuts to encourage local manufacturing as ways to boost growth.
Finance Minister Nirmala Sitharaman will present the budget for the next fiscal year on Feb. 1 at 0530 GMT.
A weaker manufacturing sector and slower corporate investments are seen dragging India’s growth to 6.4% in 2024/25.
The growth slowdown amid global volatility has wiped out a recent stock market rally.
(Reporting by New Delhi bureau; Editing by Jacqueline Wong and Shri Navaratnam)
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