A few days ago finance minister (FM) Nirmala Sitharaman mentioned that the key problem of the Indian economy had been the global uncertainty in economic matters. This was the key risky factor to the
country’s FY 26 outlook. The private sector is shaky to invest in new capital formation. She reportedly said, “The private sector and policy makers must be mindful of this risks and act urgently to avoid
making uncertainty feed upon itself”.
She highlighted about the strength of the economy and said that the new investments had already been started in the economy and capacity utilization had also been rising. Government had been continuing emphasis on infrastructure development. The balance sheets of the banks and companies were in healthy
balance that meant easing financial condition. The service export was expected to be good. The only problem might be on merchandise exports.
She also said that government had been continuously watching and monitoring the situation and trying to find out scope for diversification of trade. Private sector had to improve quality and differentiate
products for their win in competitive market.
Some of the good signs of the Indian economy
Some of the good signs of economic resilience are growth of collection of gross tax revenue which is impressive at 10.9% in April-February FY 25, GST collection of rs 2.37 lakh crore, a record high. The
IMF projections about the growth is robust at 6.2 % in FY 25 and 6.3 in FY 26 are also encouraging.
Foreign exchange reserves stood at $688.13 as of April 25. Export rose to all time high of $824.9 billion in the FY 25. At the same time the manufacturing PMI hits 10-month high.At 58.2 in April.
