India's Fiscal Deficit Target Revised Down to 4.8% for FY25

In a significant move towards fiscal consolidation, the Indian government has revised its fiscal deficit target for FY25 to 4.8% of GDP, down from the previously budgeted 4.9%. This adjustment reflects the government's commitment to financial prudence while balancing economic growth. The revision is attributed to robust tax collections, particularly in GST and income tax, coupled with slower capital expenditure due to the election year. This fiscal discipline is expected to boost investor confidence and support India's economic stability in the coming year.

Source: HSBC Economic Research