Please note these important key points of economic survey of 2025 which are important investors point of view. Please wait for our full budget based blog in the next blog.
Projected Economic Growth: India's real GDP is estimated to grow at 6.4% in FY25, aligning with its decadal average. For FY26, growth is anticipated between 6.3% and 6.8%, reflecting stable economic fundamentals.
Retail Investor Participation: There's a notable surge in retail investor activity in equity markets, with monthly active traders on the National Stock Exchange increasing from 3.2 million in January 2020 to 14 million in November 2024. This trend has elevated household wealth by ₹40 trillion.
Capital Expenditure (CAPEX) Growth: CAPEX has shown continuous improvement from FY21 to FY24, with a year-over-year growth of 8.2% during July–November 2024, indicating robust infrastructure development.
Banking Sector Health: Scheduled Commercial Banks have improved profitability, evidenced by a decline in gross non-performing assets and an increase in the capital to risk-weighted asset ratio, suggesting a more resilient banking sector.
Inflation Trends: Retail headline inflation has softened from 5.4% in FY24 to 4.9% in April–December 2024, which may influence monetary policy and investment returns.
Global Services Export Position: India now holds the seventh-largest share in global services exports, underscoring its competitiveness and potential for investors in the services sector.
Corporate Bond Market Reforms: Ongoing reforms in the corporate bond market aim to enhance liquidity and investor participation, presenting new opportunities for portfolio diversification.
Potential Market Correction Risks: The survey cautions that a sharp correction in equity markets could negatively impact retail investor sentiment and spending, especially given the influx of inexperienced investors. Hence SIP is suggested as best investment route
Geopolitical and Trade Risks: Geopolitical tensions and global trade policy risks continue to pose challenges, which could affect investment strategies and market stability.
Focus on Structural Reforms: The government emphasizes grassroots-level structural reforms and deregulation to boost medium-term growth potential and global competitiveness, creating a more favorable investment climate.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.
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