Growth pangs

Only proactive policies would salvage the economy amid the new external shocks

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HE FINANCE MINISTRY said in its latest monthly economic review that "overall, the first quarter of FY26 presents a picture of resilient domestic supply and demand", and that the economy "sustained its growth momentum" in the period. The previous quarter had seen gross domestic product (GDP) expansion of an inspiring (and surprising) 7.4%, upon a strong base (8.4%), though the gross value added (GVA) grew at a relatively lower rate of 6.8%. However, Q4FY25 also saw a fall in the share of private consumption in GDP to just 53% from 60% in the previous quarter. The GDP growth fell sharply to 6.5% in FY25 from 9.2% in the previous year. Most analysts, including rating agencies and brokerages, predicted a further loss in India's growth momentum. This was implicitly endorsed by the government, with a broad-range (6.3%-6.8%) estimate in the Economic Survey. Against this background, and in the milieu of the global tariff war, the finance ministry's latest assessment suggested a relative steadiness in the country's economic performance, or at least