Union Budget 2025: Can It Boost India's Investment GDP Ratio?

Despite government measures, private sector investment remains low, keeping the investment-to-GDP ratio under 35%. Will the upcoming budget provide the push needed for economic growth?

India’s private-sector investment remains weak, as compared to the 2011 high of 41.2%. With the investment-to-GDP ratio dropping to under 35% today, the anticipation for the upcoming Union Budget is at its peak. The 2019 corporate tax cut aimed to encourage investment, but challenges persist. As GDP growth lags behind expectations and bank credit to industry stays low, the 2025 Union Budget slated to be presented by Finance Minister Nirmala Sitharaman could play a key role in revitalising investment. With crucial policy decisions ahead, will it be possible for India to achieve its growth ambitions?

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