India's Economic Balance: Tackling Slowdown Amid Global Uncertainty

India is facing a slowdown in economic growth due to global challenges and weakened domestic confidence. With annual growth projected at 6.4%, policymakers suggest stimulus measures to boost demand. The recent appointment of a new central bank governor highlights the prioritization of growth, with fiscal adjustments on the agenda.

Amid global uncertainties and declining domestic confidence, India's economic growth is projected to slow to 6.4%, the least in four years. This comes on the back of weaker investment and manufacturing sectors.

Policymakers, facing pressure to invigorate the economy, are considering monetary and fiscal stimuli. Finance Minister Nirmala Sitharaman's recent consultations have sparked demand for policies boosting consumer spending.

In December, a surprise leadership change at India's central bank underscored a shift towards growth-focused strategies over price stability. As the nation grapples with a weakening rupee and potential tariff battles, the economic outlook remains cautious.

(With inputs from agencies.)