By Admin 
With the beginning of the new financial year, EY has given good news about the Indian economy. According to his new report, this year the Indian economy will increase at a speed of 6.5 percent. But this will happen only when the government takes the right decisions regarding the use of money.
According to the report, in the last financial year 2024-25, the country’s economy registered a growth of 6.4 percent. The figure is slightly lower than the revised estimates released by the National Statistics Office (NSO), with a 6.5 percent increase for 2024–25. Experts believe that both personal consumption and government investment will have to be promoted to keep the economy strong this year.
What else is there in the report?
The EY report pointed attention to some major challenges. For some time, there has been a decrease in private sector investment, due to which the Finance Ministry had recently appealed to the industry to increase investment. Also, the government will need to increase the expenditure in important areas like health and education. According to the report, the expenditure on education will have to be increased from the current 4.6 percent to 2048 GDP, while the health expenditure will have to be taken to 3.8 percent.
Trust in youth
Ey India Chief Policy Advisor DK Srivastava told the media that India’s youth population is a big opportunity for the country. According to him, “Working age growing population can start a positive cycle of development, employment, savings and investment. But for this we have to ensure adequate investment on health, education and infrastructure.”
Financial experts believe that this year the biggest challenge before the government will be to increase revenue as well as to maintain fiscal discipline. The report suggested that gradually increasing the revenue-to-GDP ratio from 21 percent to 29 percent will help the government to achieve these goals.
Indian economy is going to be strong
The report released at the beginning of the new financial year clearly indicates that the Indian economy has a strong growth opportunity, but it will require correct policy decisions and vigilant management. It remains to be seen how the government and the industry deal with these challenges and will they achieve the growth rate of 6.5 percent this year.
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