As with every election year, this year starts with uncertainty. However, I am sure the country will reach a consensus for the general good. Hence, we should expect renewed positivity in business.

In its latest South Asia Development Update, the World Bank has projected robust growth of 6.0 percent for the region, driven predominantly by India’s strong economic performance. India has been regarded as the region’s economic powerhouse. This growth is largely attributed to the resilience of the services and industrial sectors. Even Morgan Stanley is bullish about the Indian economy, raising its GDP growth forecast to 6.8 percent for 2024-25 from 6.5 percent estimated earlier.

Market experts say FY24 was an outstanding year for the Indian stock markets. The BSE Sensex saw an incredible rise of about 24 percent, outperforming prior years’ performance and generating substantial wealth for investors. This growth outpaced many global counterparts, showcasing the market's resilience and strength. The predictions point to an optimistic trend into the fiscal year 2025, with volatility mostly triggered by events happening worldwide.

In my opinion, the digital payments ecosystem in India is well set for growth and will drive smartphone penetration, internet connectivity, and digital transactions. Fintech innovations, including digital wallets, UPI payments, and contactless transactions, are expected to gain momentum, leading to greater financial inclusion and convenience for consumers. We can also expect the business growth of cyber security firms, which guard the fintech innovations.

ESG considerations will gain prominence in India's financial landscape. Investors increasingly prioritize sustainable and responsible practices, accelerating the adoption of green bonds, renewable energy projects, and socially responsible funds. As awareness of climate change and social issues grows, ESG investing will likely become mainstream during the financial year.

However, will all be as positive as we expect? I am curious to see how inflationary pressures drive policymakers' monetary decisions. Rising commodity prices, supply chain disruptions, and geopolitical tensions may continue contributing to inflationary concerns, necessitating a cautious approach toward monetary policy. The Reserve Bank of India has a task ahead of itself to maintain a delicate balance between supporting economic growth and managing inflationary risks in the financial year 2024-2025, which I am sure will be handled as efficiently as we have witnessed in the past.

Summing up, the financial year 2024-2025 in India may witness various challenges and opportunities across various sectors. Proactive policies, innovative solutions, and resilient business models will drive inclusive and sustainable growth as the country navigates through economic recovery, digital transformation, and sustainability imperatives.