2 min readNew DelhiUpdated: Jun 13, 2024 08:34 AM IST
Amid the backdrop of global geopolitical and economic challenges, India has to strike a fine balance for maintaining the growth momentum amid flagging consumption demand and sticky inflation. While the country has clocked a growth rate of over 7 per cent in the last three years, challenges remain in the form of muted agricultural growth, weak exports and private investment.
The Reserve Bank of India (RBI) has projected a robust growth outlook for the country with the government’s sustained focus on capital expenditure while maintaining fiscal consolidation. However, the weakened mandate to the Bharatiya Janata Party-led National Democratic Alliance government may see the upcoming Budget stepping up expenditure on welfare schemes in order to reach out to the poor and rural sector, and this may pose a challenge to the fiscal consolidation roadmap.
Will the government focus on higher spending to spur consumption demand and investments or stick to its fiscal prudence? Will the RBI initiate a rate cut before its global peers amid a higher-for-longer rate cycle? What are the multiple channels through which global risks will be transmitted to India? Will India be able to boost employment creation and manufacturing share in the economy?
To discuss this and more, and what the next financial year holds for India and the rest of the world, listen to the session of Explained on Thursday with Sajjid Chinoy, Chief India Economist, JP Morgan, and Part-Time Member, Prime Minister’s Economic Advisory Council.
Chinoy will discuss the ways in which the Indian economy should be looked at in times of inflation, constraints to growth, and persistent global risks. He will be in conversation with Executive Editor P Vaidyanathan Iyer.
