Mar 05 2025 17 mins
In this episode of the State of Economy Podcast, businessline’s Shishir Kumar Sinha speaks with Ajit Banerjee, President and Chief Investment Officer, Shriram Life Insurance, sharing his views on the latest economic figures and the broader implications for India’s economic growth trajectory.
The episode starts with Banerjee discussing the latest GDP growth numbers for Q3, which show a 6.2 per cent growth, a slight improvement over Q2, but still below last year’s figures. They explore the impact of base effects, the government’s capital expenditure (CapEx) strategy, and its balancing act between maintaining growth and fiscal discipline. With rising expectations for Q4, the podcast takes a closer look at whether the country can achieve a projected 7.6 per cent growth rate in the final quarter of the fiscal year.
The conversation also looks at the challenges the government faces in meeting ambitious CapEx targets, the shift from government spending to private consumption, and the impact of tax relief for middle-class households. Banerjee discusses the broader consumption patterns in India, highlighting the importance of income tax cuts and favourable agricultural conditions in supporting growth in both urban and rural areas.
The episode goes on to analyse the ongoing GST rate rationalisation process and its potential effects on the economy. They also touch on the risks posed by weather conditions, particularly in relation to food inflation, and explore the country’s inflation dynamics, which remain a critical factor in shaping the economic outlook for FY25 and beyond.
Tune in for a detailed discussion of India’s economic growth prospects, the fiscal challenges the government faces, and the various factors that could shape the India’s economy in the coming year.
(Host: Shishir Sinha; Producer: Siddharth Mathew Cherian, Prethicshaa Gurumoorthy)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.