A practical view

• India’s growth is seen faltering after four years of healthy post-pandemic growth.

• Stock markets are tumbling, the rupee is losing ground faster than expected.

• Major drivers of the economy – domestic demand and public sector capex – are sputtering.

• Private investments remain insipid.

• The new U.S. administration’s determination to upend global trade and taxation arrangements is unsettling.

• The Economic Survey 2024-25 warns that India must focus on domestic factors to spur higher growth and become more competitive.

• The real GDP growth may be in the range of 6.3% to 6.8% in 2025-26, from the 6.4% pace estimated for this year.

• The survey warns that a ‘business as usual’ approach risks fostering economic stagnation.

• The government is advised to undo micro-management regulations and bridge the ‘trust deficit’ between authorities and citizens.

• The survey calls for a refresh of the ease of doing business drive, minimising controls that distort markets, and seeking accountability from regulators