BUDGET 2025: DRIVING INDIA'S GROWTH IMPERATIVE

FY25 growth forecasts put out this month have raised warning signs for the economy

- SANJEEV KRISHAN

Has India taken its foot off the gas?

This question has begun plaguing boardrooms as the reigning "fastest-growing large economy" witnesses a slowdown. While some might say this is cyclical, concerns are rising that this slowdown is symptomatic of deeper structural challenges. The FY25 growth forecasts announced this month have raised warning signs for the Indian economy, underscoring the urgent need for decisive policy interventions.

Economic indicators paint a sobering picture—high inflation, tepid capital inflows and a record trade deficit. Urban consumption, traditionally a dependable growth engine, has been curtailed by stubbornly high food inflation and low wage growth. The possibility of the middle-income trap is compounded by concerns of India losing out on its demographic dividend.

Despite improved education levels, nearly a quarter of Indian youth remain outside employment, education or training (NEET)—a troubling statistic that surpasses regional and income-group averages. Equally concerning is the fact that educated youth have higher rates of unemployment.

Three critical pivots: Against this backdrop, the upcoming presentation of the Budget in February carries significant weight. Targeted interventions across three pivots will be critical in reviving high growth rates—curbing food inflation, invigorating consumption and private investment, and developing India's talent pool.

India's persistent food inflation demands structural remedies, not just short-term fixes. The call for a second green revolution has grown stronger in recent years. Empowering the Indian Agricultural Research Institute (IARI) and fostering collaboration with India's vibrant start-up ecosystem can help develop agricultural inputs and techniques that lead to higher yields.