FROM TAKEOFF TO TURBULENCE: PERILS OF INDIA'S HALF-FINISHED REFORMS

IMAGINE A MARATHON runner, navigating a course riddled with unexpected hurdles and detours.

- Vikas Singh

This encapsulates India's economic journey: a nation facing persistent structural obstacles, demanding constant course correction to realize its full potential.

A Giant Stumbling Forward:

Three decades ago, India embarked on market-driven reforms, compelled by a crisis. Today, as the world's fifth-largest economy, the challenge is sustaining high growth while overcoming systemic inefficiencies. While GDP growth has averaged 6-7 per cent in recent years, this pace is insufficient to propel India into the league of developed nations. The risk is real and clear: stagnation in the middle-income trap.

India, with its vibrant democracy, offers stability and resilience. Its large and dynamic market, fuelled by a robust consumer class, presents significant opportunities. Notably, the economy demonstrates substantial resilience to global economic shocks, largely attributed to its insulated market structure where domestic consumption constitutes approximately two-thirds of economic activity.

Moreover, India's youthful population and expanding workforce, often cited as a demographic dividend, drive innovation, entrepreneurship, and growth. Significant strides in digital and physical infrastructure further solidify its position as a global economic powerhouse.