India's Economic Resilience in the Face of Global Headwinds

India's GDP is projected to grow at 6.5 per cent in the current fiscal year, showcasing the economy's resilience against short-term geopolitical disruptions, according to CII President Sanjiv Puri. In a conversation with PTI, Puri underscored the importance of bolstering India's trade position through strategic bilateral agreements, especially as global protectionism rises.

Positive Indicators Supporting Growth

Puri pointed to several macroeconomic indicators that support this optimistic projection, including easing interest rates, declining inflation, and recent personal income tax concessions. Additionally, there has been a noticeable increase in both public and private investments towards the end of the previous fiscal year.

Challenges and Opportunities Ahead

While private investment is gaining momentum in sectors like energy, transportation, and hospitality, Puri acknowledged that geopolitical uncertainties might lead to cautious investment decisions. He also highlighted the need for India to navigate the rising trend of global protectionism by securing its economic interests through strategic trade agreements.

Focusing on Domestic Drivers of Growth

Puri emphasized the need to focus on internal economic levers such as agriculture, climate adaptation, and enhancing domestic competitiveness to offset global uncertainties. He also mentioned expectations for further interest rate easing and a pickup in urban demand in the coming quarters.