Bright growth outlook for H2, but new risks seen in FY26: Finance Ministry

In its economic review for November, the ministry also said the “combination of monetary policy stance and macro-prudential measures by the central bank may have contributed to the demand slowdown” in the first half of FY25. It termed the RBI’s move to lower the cash reserve ratio to 4% from 4.5% as “good news”. This will enable banks to lend more and should help boost credit growth, which has “slowed a little too much and quickly in FY25”, the ministry said.

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