Aneesh Srivastava, Executive Director and Chief Investment Officer at Star Health and Allied Insurance Company, predicts that India's GDP growth for FY25 will be around 6.5%, which is in line with the country's long-term potential.

He points out that the global economic environment is challenging due to weaker demand and warns that trade protectionism and potential tariff wars could lead to inflationary pressures, resulting in higher interest rates.

Srivastava expects private sector capital expenditure to remain low in the second half of FY25 due to the 6.5% real growth and elevated interest rates. He believes that this cautious outlook will continue unless there is a significant change in the economic landscape, drawing on his 28 years of experience in investment across different asset classes.