india and global

India's
Macroeconom
ic Landscape
in a Global
Context
Introduction
With a population of more

than 1.4 billion, India is the
world’s largest democracy.
Over the past decade, the
country’s integration into the
global economy has been
accompanied by economic
growth. India has now
emerged as a global player.
01
Gross Domestic
Product
GDP
“India’s GDP growth is

likely to moderate from 8.2
percent in 2023 to 7
percent in 2024, and 6.5
percent in 2025 because
the accumulated demand
during covid has exhausted
as the economy reconnects
with it’s potential.” -IMF
Assessing India's GDP Growth
The Indian economy continues to grow at a healthy pace despite challenging global conditions,
according to World Bank’s latest India Development Update.
The India Development Update (IDU) observes that India remained the fastest-growing major
economy and grew at a rapid clip of 8.2 percent in FY23/24. Growth was boosted by public
infrastructure investment and an upswing in household investments in real estate. On the
supply side, it was supported by a buoyant manufacturing sector, which grew by 9.9 percent,
and resilient services activity, which compensated for underperformance in agriculture.
Reflecting these trends, urban unemployment has improved gradually since the pandemic,
especially for female workers. Female urban unemployment fell to 8.5 percent in early FY24/25,
although urban youth unemployment remained elevated at 17 percent. With a narrowing of the
current account deficit and strong foreign portfolio investment inflows, foreign exchange
reserves reached an all-time high of $670.1 billion in early August, equivalent to over 11 months
oft cover (in FY23/24 import terms).
Growth bets
GDP FY-25 forecasts (in%)
IMF 7.0
S&P 6.8
World Bank 7.0
RBI 7.2
Moody’s Analytics 7.1
World Economic outlook projections for India (FY25 in %)
Indicator Oct April
Consumer Inflation 4.4 / 4.6
Current account deficit -1.1 / -1.4

02
Tax
collection,
borrowings
Tax Collection, borrowings
India’s tax collections help fund important services like schools, hospitals, and roads, making life
better for everyone. More tax money means the government can reduce debt, support job
creation, and keep the economy stable. This extra funding also helps the government invest in
programs for people in need, making growth more fair and sustainable.
The provisional figures of Gross collection of Direct Taxes (before adjusting for refunds) for the
Financial Year 2024-25 stand at Rs. 5,15,986 crore compared to Rs. 4,22,295 crore in the
corresponding period of the preceding financial year, showing a growth of 22.19% over the
collections of FY 2023-24.
Gross market borrowings are estimated at ₹14.01 lakh crore and net market borrowings at
₹11.63 lakh crore during 2024-25.
In terms of percentage contribution to Gross Tax Revenue (GTR), the government has recently attempted to
reduce the proportion of corporate tax (Figure 2). The percentage of corporate tax to GTR has decreased from
34.5% in 2014-15 to 26.6% in the 2024-35 budget estimates. On the other hand, the percentage of income taxes
has increased from 20.8% to 30.9% in the same period.
03
Inflation
Rate
Inflation Rates
Inflation, or a rise in the general price level of goods and services, has long been a subject of
concern and debate around the world. It affects everything from the cost of groceries and
housing to the economy's overall health. As the nation gears up for the upcoming general
elections, it becomes crucial to delve into inflation in India to better understand the country's
economic situation.
The annual inflation rate in India rose to 5.49% in September of 2024 from 3.65% in the
previous month, well above market estimates of 5%.
MOSPI statement says the rise in inflation rate for September 2024 is due to high base effect
and weather conditions. The inflation is likely to settle down after the monsoon season and a
growth is seen to be emerging.
Source-moneycontrol
04
Inflation
Rate
Receipts
Total receipts for FY25 are recorded at Rs.32.07 lakh crore. Total expenditure recorded at
Rs.48.21 lakh crore and net tax receipts recorded at Rs.25.83 lakh crore in the financial year
2025, thereby resulting in fiscal deficit of 4.90% of GDP. The deficit is reducing as compared to
last year which is a green signal.
Corporate tax rates: 22% for existing domestic companies and 15% for certain new
manufacturing companies.
Tax buoyancy of state revenue increased from 0.72 (2012-16) to 1.22 in the post-GST period
(2017-23), indicating enhanced revenue growth.
An additional target of 2 crore houses has been set for the next 5 years, emphasizing the
government's commitment to rural housing development.
Installation of 1.3 crore LED street lights under the SNLP scheme to enhance energy efficiency
The receipts are increasing when compared to last year, mainly due to the change is tax slabs
previously which has made it easier for individuals to understand and pay tax.
The budget targets a balanced approach to inflation and growth, ensuring that rising prices do
not burden citizens and their income class increases.
04
Mutual fund
industry
Mutual Fund Industry
The mutual fund industry in India has experienced significant growth and development over the
past few decades, emerging as a vital component of the financial landscape. One of the most
positive aspects is the increasing awareness and participation of retail investors, which has led
to a diversified investor base.
The industry offers a range of investment options that cater to different risk appetites and
financial goals, making it accessible for both novice and seasoned investors. The rise of digital
platforms has further simplified the investment process, allowing for easier transactions and
real-time monitoring of investments.
Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of
September 2024 stood at ₹ 68,00,486 crore.
Assets Under Management (AUM) of Indian Mutual Fund Industry as on September 30, 2024
stood at ₹ 67,09,259 crore.
The AUM of the Indian MF Industry has grown from ₹9.59 trillion as on September 30, 2014 to
₹67.09 trillion as on September 30, 2024 around 7 fold increase in a span of 10 years.
The increase in investment shows trust in Indian capital markets and its expected growth.
04
Global
Markets
Global Markets
The latest World Economic Outlook reports stable but underwhelming global growth, with the
balance of risks tilted to the downside. As monetary policy is eased amid continued disinflation,
shifting gears is needed to ensure that fiscal policy is on a sustainable path and to rebuild fiscal
buffers. Understanding the role of monetary policy in recent global disinflation, and the factors
that influence the social acceptability of structural reforms, will be key to promoting stable and
more rapid growth in the future.
Thanks
CREDITS: This presentation template was

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Resources
● PIB GOV
● Bloomberg
● IMF
● Moneycontrol
● RBI
● AMFI India

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india and global

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India's

With a population of more

“India’s GDP growth is

World Bank 7.0

Moody’s Analytics 7.1

World Economic outlook projections for India (FY25 in %)

Indicator Oct April

Consumer Inflation 4.4 / 4.6

Current account deficit -1.1 / -1.4

CREDITS: This presentation template was

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