India needs more private investment to achieve 8% growth

The signs of economic deceleration have become evident, with trade disruptions, subdued consumer demand, and lacklustre private corporate investment now impacting industrial performance, and which is visible in corporate results/outcomes.

- Madhusudhanan S

Things will likely get worse, particularly if the proposed 50% tariffs happen.

In response to the urgency of the situation, the government announced a package of Goods and Services Tax (GST) reforms on 15 August, aiming to boost consumer demand by reducing taxation.

Slowdown in Growth and Profits Earning of Private Sector

Company results analysis reveals a slowdown in growth, with publicly listed companies reporting single-digit revenue growth for the ninth (9th) consecutive quarter in the April-June period.

Core profits have also declined, excluding additional income and onetime gains, affecting leading sectors like IT, banking, fast-moving consumer goods, automobiles, and pharmaceuticals.