India's Economy: A Balancing Act Amid Global Challenges

India's latest economic figures reveal a 7.8% growth rate in the October-December quarter, a reduction from the previous quarter's 8.4%. The deceleration stems from slowing government spending and investment, although consumer demand remains robust.

Prime Minister Narendra Modi's administration is responding by updating economic data methodologies, aiming to address past criticisms and improve accuracy. Updated metrics predict India's nominal GDP for 2025/26 could increase by 8.6%.

The government is focused on overcoming trade barriers, reducing tariffs on U.S. goods, and tackling domestic issues through tax cuts and labor reforms. India's manufacturing and service sectors are showing strong performance, despite challenges faced by the agriculture sector.