An uncertain world: India needs to improve its economic growth potential

The challenge for policymakers in India is to protect financial stability and find ways to increase growth potential at a time when global growth is likely to be below trend

There is considerable anxiety around the world regarding economic outcomes this year. Much will depend on policy shifts in the United States as Donald Trump begins his second term as President. Both the International Monetary Fund (IMF) and the World Bank released their economic assessments last week, signalling uncertainty, but they extend beyond the policy changes in the US. Both multilateral institutions expect global growth to be steady during the year, though projections differ. The IMF expects the world economy to grow at 3.3 per cent in 2025, while the World Bank expects the growth rate to be 2.7 per