India, once celebrated as one of the world’s fastest-growing economies, is bracing for its weakest growth since the pandemic’s peak in 2020, with a projected rate of 5.5% this fiscal year. The slowdown, attributed to rising interest rates, subdued private investment, and shrinking export markets, is compounded by global headwinds like disrupted supply chains, geopolitical tensions, and sluggish growth among key trading partners. Domestically, faltering demand, expensive credit, and challenges in the rural economy have weighed heavily on key sectors like real estate, manufacturing, and agriculture. In response, the government has announced measures including increased infrastructure spending and incentives for industries, though experts warn these may take time to yield results. Despite these challenges, India’s long-term potential remains promising, bolstered by structural reforms, investments in technology, and a young workforce, though policymakers face the immediate task of balancing inflation management with growth revival.
