Revitalisation Needed to Maintain Long-Term Growth of Over 6%: Report

Over-reliance on one single sector could be dangerous, and for India to achieve a diversified and resilient domestic economic engine is essential.

- TDG NETWORK

The Indian domestic economy requires strategic focus for sizeable and sustained long-term growth, according to a report by DSP NETRA. "The domestic economy needs a resilient, sizable, and steady growth engine to drive higher growth rates," the report says.

The domestic economy finds itself in a critical position after facing a significant setback from the pandemic. The biggest drag on growth has come from the services sector, where contact-intensive sectors such as trade, hotels, and travel were hit hard. Although it saw a sharp revival, the overhang of weak consumption growth and a premature slowdown in wages and salary growth threatens the momentum in this segment.