Challenges for India's Economic Growth

Key Points

• 1India's real GDP grew 6.5% in FY24-25.
• 2Domestic headwinds include weak urban consumption, patchy rural recovery, and household balance sheet stress.
• 3Uncertainty over tariffs imposed by the United States could weigh on global investment flows.
• 4Companies' operating profits have surged since the corporate tax cut, but capex has barely moved.
• 5The RBI has cut lending rates four times since February this year.
• 6Jobs, consumption recovery, and private capex are festering problems.
• 7External headwinds include protectionist regulations, ongoing wars, and a weakening American economy.