Outlook Business Desk
India's GDP growth dropped to 5.4 per cent, the lowest in seven quarters. Experts debate if this slowdown reflects global uncertainties or deep-seated structural weaknesses in the economy.
Private sector investments are inching back post-pandemic, but state-level hesitancy and real estate stagnation hinder growth. Emerging sectors like renewables and fintech show promise, albeit slowly.
Inflationary pressures and a fragile rupee limit RBI's policy flexibility. While rate cuts could boost growth, they risk currency destabilization and widening fiscal deficits.
States like Maharashtra and Gujarat thrive, while Uttar Pradesh and Bihar lag. The rural-urban divide widens, threatening socio-economic cohesion and balanced development.
Geopolitical tensions, US fiscal challenges, and volatile trade policies impact India’s economy. India must leverage foreign investments while addressing internal vulnerabilities.
Experts predict moderate growth, below 7%. Structural issues like job creation, healthcare, and education investment remain key to sustaining long-term economic stability.
India’s demographic edge and sectors like renewables present immense potential. Yet, without addressing structural and external challenges, growth aspirations may remain unfulfilled.