POWER OF CONTINUITY

With all key Cabinet ministries firmly secured, the return of Modi-led National Democratic Alliance at the Centre bodes well for the economy despite several key challenges facing the ministers

- Ashish Sinha

THE newly elected Indian government confronts a daunting array of economic challenges that demand immediate and strategic intervention. Chief among these is the persistent issue of unemployment, which has reached alarming levels, exacerbating socioeconomic inequalities. The labour market remains strained, necessitating robust job creation strategies to absorb the growing workforce and harness the demographic dividend. Simultaneously, the government must grapple with the burgeoning national debt, which has soared to unprecedented levels. This fiscal burden is compounded by a substantial fiscal deficit that undermines macroeconomic stability. Effective fiscal consolidation measures are imperative to rein in public expenditure while optimising revenue generation without stifling economic activity.

In his message, Sanjiv Puri, President, Confederation of Indian Industry, the apex body of India Inc. said: “Building upon a strong growth rate of 8.2 per cent for 2023-24, the new Government under the visionary leadership of Narendra Modi can usher in the next phase of reforms to make the most of the global opportunities and build on the robust fundamentals of the Indian economy.” Echoing the sentiments, the President of the second-largest industry body, the Federation of Indian Chambers of Commerce and Industry, Anish Shah said the third consecutive term for the NDA paves way for continuity in the reform agenda. “We look forward to progressive policies and measures that will foster economic and social development and build a strong foundation for ‘Viksit Bharat’,” said Shah.