Sat Feb 01 07:50:00 UTC 2025: ## India’s Economic Growth Falters, Budget Session Opens Amidst Concerns

**NEW DELHI, February 1, 2025** – India’s Parliament convened for its Budget session today against a backdrop of slowing economic growth. Concerns are rising as the nation’s post-pandemic economic boom appears to be fading. The stock market is experiencing a downturn, the rupee is weakening, and key economic drivers – domestic demand and public sector capital expenditure – are showing signs of slowing while private investment remains sluggish.

The Economic Survey 2024-25, released today, projects real GDP growth between 6.3% and 6.8% for 2025-26, a slight increase from the 6.4% estimated for this year. However, the Survey warns that growth below 8% over the next decade would hinder India’s goal of becoming a developed nation by 2047. The report highlights the need for a shift away from a “business as usual” approach, urging the government to embrace deregulation and reduce micro-management of businesses.

The Survey emphasizes the importance of bridging the trust deficit between authorities and citizens and fostering a level playing field for businesses, particularly small firms. It advocates for minimizing market-distorting controls and promoting economic freedom. This advice comes at a time when the government has recently implemented policies such as import curbs and production-linked incentives that the Survey implicitly criticizes.

The upcoming Union Budget will be crucial in determining whether the government heeds the Survey’s recommendations for boosting economic growth amidst a challenging global environment marked by a potentially disruptive new US administration and a retreat from globalization. The Survey stresses the necessity of focusing on domestic factors to enhance competitiveness and attract foreign investment.

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