India's economic challenges in 2025: Reforms key to sustained growth

To achieve Viksit Bharat, India must tackle slowing growth and global headwinds

India starts 2025 on a sombre note with the passing of Dr Manmohan Singh, whose bold first-generation reforms in 1991 set the country on the path to faster growth. The economy is also slowing, with Q2 FY25 growth dropping to 5.4 per cent. Over the past three years, it performed well above expectations, growing at 8.7 per cent in FY22, 7.2 per cent in FY23, and 8.2 per cent in FY24, driven by public capital expenditure, substantial investments in global capability centres (GCCs), and surging service exports.

 

Government experts and analysts think the dip in last quarter’s growth is temporary.