New Delhi, Mar 23 (KNN) The Indian economy is poised for robust growth in FY25, propelled by vigorous investment activity and strong private consumption demand, as highlighted in the finance ministry's economic review for February.

Despite sluggish global growth, the finance ministry remains optimistic about India's economic outlook. However, challenges such as the ongoing crisis in the Red Sea and escalating crude oil prices cast shadows over the horizon.

The ministry cautioned that disruptions in shipping due to the crisis could lead to inflationary pressures.

Additionally, grain shipments from key regions like the Russian Federation, Ukraine, and Europe face disruptions, posing risks to global food security.

The report stated, "Sustained increases in shipping costs due to disruption can drive up inflation. The crisis is also reverberating in global food prices. Disruptions in grain shipments from the Russian Federation, Ukraine, and Europe pose risks to global food security."

Despite these challenges, the finance ministry noted positive signs of strengthening private consumption demand, citing increasing air passenger traffic, robust sales of passenger vehicles, growing digital payments, and improved consumer confidence.

Furthermore, the up scaling of enterprises and the emergence of sunrise sectors are expected to drive quality employment opportunities, particularly in the manufacturing sector.

The review also highlighted increased demand for residential properties in tier-2 and tier-3 cities, which bodes well for furthering construction activity.

In addition, non-farm employment has seen a revival, signalling improved capacity to absorb labour transitioning from agriculture.

(KNN Bureau)