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Reigniting Growth
The Statesman
|January 10, 2025
India's economic trajectory, once celebrated for its resilience and rapid growth, is now encountering significant headwinds.
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With GDP growth projected to slow to 6.4 percent in the upcoming fiscal year, the lowest in four years, policymakers face the daunting task of reigniting momentum amid global uncertainties and waning domestic confidence.
The moment demands a recalibration of India's economic playbook to navigate these challenges while laying a foundation for sustainable growth. A key concern is sluggish domestic consumption. Despite robust infrastructure spending in recent years, wage stagnation and limited job creation have hampered household spending, a critical driver of India's economy. This stagnation has placed the economy in a state of limbo, where cautious consumer behaviour inhibits demand recovery.
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