Economic Challenges Facing the Modi Government

Dear Sir,
The recent dip in India’s GDP growth to 5.4% in the second quarter of 2024 is a significant cause for concern regarding the country’s economic outlook. While the Finance Minister has expressed optimism about a recovery in the third quarter, the noticeable drop in the manufacturing sector, tepid private consumption, and increasing inflation signal deeper underlying issues. With global uncertainties and geopolitical tensions on the rise, the Indian economy is at a pivotal crossroads.
To foster continued growth, the Union Budget 2025-26 must prioritize substantial public spending, infrastructure development, and job creation. However, the government’s history of underutilizing its capital expenditure budget raises red flags. It is imperative to address the agrarian crisis and rejuvenate the manufacturing sector as urgent matters. Should these challenges remain unaddressed, the nation risks losing its economic momentum. The upcoming budget must deliver innovative solutions to protect India’s future growth trajectory.
Sincerely,
Niharika Katoch
Bhaderwah