Economy Year-Ender 2025: Growth, fiscal challenges, and the outlook ahead ​

As 2025 draws to a close, India's economy navigates fiscal pressures and growth uncertainties. In this special Year-Ender podcast, businessline’s Shishir Kumar Sinha speaks with Ranen Banerjee, Economist at PwC, to unpack key trends shaping the Indian economic landscape. ​ Banerjee anticipates gross tax revenues at 94-95% of budgetary estimates with a shortfall of 1-1.1 trillion rupees, offset by higher RBI dividends and public sector enterprise payouts, keeping the fiscal deficit near the 4.4% target. Discussions highlight robust government CapEx supporting infrastructure amid lagging private investment due to capacity utilization at 70-75% and global headwinds. Looking to FY27, growth is projected at 6.5-7% with inflation at 3.5-4% post base year changes.