Several factors have contributed to this downward revision. Firstly, the persistent impact of the pandemic on various sectors of the economy, including manufacturing and services, has led to slower-than-expected growth. The emergence of new variants and periodic waves of the virus have disrupted economic activities and hindered a swift recovery.
Secondly, supply chain disruptions and rising input costs have put pressure on industries, affecting their output and profitability. Inflationary pressures have also played a role in this economic scenario, impacting consumers’ purchasing power and overall demand.
Source:- the economic times
Additionally, the global economic environment remains uncertain, with factors such as rising commodity prices and potential interest rate hikes in major economies influencing India’s economic prospects. Trade tensions and geopolitical developments can further complicate the situation, impacting India’s external trade.
Source:- India todayTo address these challenges and foster robust economic growth, India will need to focus on structural reforms, investment in infrastructure, and measures to boost private sector participation. The government’s initiatives aimed at promoting manufacturing, digitalization, and sustainable development can also play a crucial role in enhancing economic resilience.
In conclusion, while the downward revision of India’s growth forecast for FY24 reflects the ongoing challenges posed by the pandemic and global economic uncertainties, it underscores the importance of prudent economic management and strategic reforms to support a sustainable and inclusive recovery. India’s ability to navigate these challenges effectively will be critical in determining its economic trajectory in the coming years
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