India's Economic Growth: Balancing Act Amid Global Tensions
India's economic trajectory is expected to moderate due to global and domestic influences. A balanced mix of monetary and fiscal policies will be essential for maintaining growth. This includes continued rate cuts and increased public investment, despite global supply and trade challenges, according to the EY report.
- Country:
- India
India's economic progress, despite being one of the fastest-growing major economies, is set to face moderation due to a confluence of global and domestic factors. The latest report from EY highlights the necessity for a strategic application of monetary and fiscal policies to sustain momentum in the short term.
According to EY's May edition of Economy Watch, resilient domestic demand, easing inflation, and an accommodative monetary policy could pave the way for a revival in private investment, potentially bolstering India's economic prospects amidst global uncertainties.
The report underscores the impact of global supply chain disruptions, recent US tariff measures, and geopolitical tensions on India's economic outlook, stressing the importance of ongoing rate cuts to boost consumption and investment, alongside revitalizing public investment to sustain economic activity.
(With inputs from agencies.)
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