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Policy choices that deepened the slowdown demand urgent course correction

What's troubling is that this slowdown is unfolding despite a broadly stable global economy-no financial crisis, no commodity shock

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Abhishek Anand

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For years, India has been one of the world’s fastest-growing major economies, attracting global investors eager to capitalise on its potential. Today, the story is less flattering. Growth has decelerated sharply, with gross domestic product (GDP) expanding by 6.1 per cent in April-December FY25, down from 9.5 per cent during the same period last financial year. Inflation remains stubbornly above the Reserve Bank of India’s (RBI’s) 4 per cent target, markets are jittery, and foreign investors are pulling out. And just when things couldn’t look worse, there’s the looming spectre of Donald Trump imposing higher tariffs on Indian exports.
 
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