Navigating Growth: India's Strategic Play Amidst Global Economic Tensions

Despite global trade tensions, the Indian economy may grow 6.5% this fiscal year, helped by lower crude oil prices. EY suggests India's growth is sustainable with appropriate policies, emphasizing reforms and strategic trade links. Short-term benefits include reduced inflation and potential bilateral trade enhancements with the US.

The Indian economy is on track to achieve a growth rate of 6.5% for the current fiscal year, buoyed by the anticipated decline in crude oil prices, according to a recent EY report. This growth persists despite escalating global trade tensions impacting exports and global demand.

EY's 'Economy Watch' identifies four critical dynamics affecting India: diminishing exports, falling crude oil prices, the global economic slowdown, and the effects of global overproduction capacities. Chief Policy Advisor D.K. Srivastava outlined how suitable fiscal and monetary strategies could sustain this growth trajectory while keeping inflation in check.

Strategic responses to these challenges include strengthening ties with the US, exploring bilateral trade agreements, and emphasizing reforms in land, labor, education, and technology sectors. Such measures can drive India's robust growth despite the ongoing global economic headwinds.

(With inputs from agencies.)