India's Economic Resilience: A Beacon of Hope in Turbulent Times
(Talk about how India handled its fiscal consolidation, spending on infrastructure, and macroeconomic stability according to best practices in the world) The Union Budget 2025-26 and the Economic Survey of India present a long-term economic plan that would enable the country to focus on internal development and make changes in the face of the unpredictable global world. The policy framework depicts a balance of fiscal discipline, structural reform, and increased involvement in international markets. According to the Economic Survey, the mid-term potential growth rate of India has risen to approximately 7 per cent, and this has been fueled by a consistent government investment, development of a rising network of infrastructure, and efficiency of logistics. This is a positive thinking that takes place at a time when the global economy is experiencing increased trade frictions, capricious capital movement, and declining investment rates. In spite of these external forces, India has still managed to exhibit resilience in terms of macroeconomic fundamentals and constant reform momentum. One of the main achievements of the Budget is the introduction of the National Mission on Manufacturing, whose purpose is to increase the manufacturing industry to 25 per cent of the GDP by 2035. The mission is also aimed at creating 143million jobs and growing the merchandise exports to USD 1.2 trillion. These plans are an indication that India aims to become closer to global value chains and to lessen reliance on external supply shocks.
In the investment front, the Survey reports that global foreign direct investment fell by 11 per cent in 2024, and India still received consistent inflows of foreign direct investment in the country because of policy stability and market potential. The latest trade and investment agreements, such as USD 100 billion through the India-EFTA partnership, shall result in an even greater leverage given to India as a favorable destination to invest in.
Sectoral trends are also positive. The growth in the agriculture and allied industries has been an average of 4.4 per cent in the last five years, with good contributions by livestock and fisheries. The growth of the financial sector has taken a new step with the International Financial Services Centre at GIFT City that currently accommodates more than a thousand international organizations and has a total of banking assets worth USD 100 billion and above. Generally, Budget 2025-26 has a policy roadmap that balances between domestic development priorities and global best practices. Through enforcing creativity, competitiveness in manufacturing, and financial prudence, India seeks to overcome the turbulence of the world while consolidating its position in the world economic development as a major energy source.
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