India-Pakistan tension and tariff war will not have any effect! The country's economy will grow rapidly

Business News: Since the Pahalgam terrorist attack, tensions between India and Pakistan are increasing rapidly, and discussions about the economy of both countries are also in full swing. On one hand, the IMF and the World Bank have given a shock to Pakistan and predicted a decline in its economy, while on the other hand, India's GDP growth forecast has also been cut.

But amidst all this, Union Finance Minister Nirmala Sitharaman said that despite the global tension, the country's economy will run at the right pace. Due to domestic consumption and investment, it is not going to affect India's economy and the economy will move forward at a growth rate of 6.5 percent.

Economic Growth: 6.5%

The Finance Minister has made this claim at a time when international agencies have predicted a decline in India's growth rate. The Finance Minister said that due to the fall in the price of crude oil, inflation in India is expected to be around 4 percent in the financial year 2026.

Positive Outlook: Services Exports and Inflation in Check

He further said that on the external front, the export of services is expected to remain strong, along with this the softening of crude oil is good for inflation. It is worth noting that during the Economic Survey, it has been estimated that India's GDP can be between 6.3 percent to 6.8 percent in the financial year 2026.

The World Bank had reduced it to 6.3 percent

However, last week, the IMF had reduced India's growth forecast by 30 basis points to 6.2 percent in the financial year 2025 due to global uncertainties and economic weakness. While the World Bank also reduced its growth forecast for India by 40 basis points to 6.3 percent.

India's Macroeconomy on Solid Ground, Says FM

Finance Minister Nirmala Sitharaman said that the trade deficit will be partially compensated to some extent during the current financial year. Not only this, the current account deficit is expected to remain within the level for the financial year 2024-25 and 2025-26. FDI is expected to remain during April to January 2024-25. Due to which the fundamentals of India's strong macro economy are revealed.