India’s GDP growth dropped to 5.4% in Q2 FY24, marking the slowest pace since Covid. After peaking at 8.2% in FY23, the economy faces structural challenges.
Weak consumption, poor corporate results, and rising loan defaults signal distress. Political hurdles like excessive subsidies, stalled reforms, labor union dominance, and judicial delays hinder progress. Agriculture’s recovery is expected with a good monsoon, but manufacturing remains weak. Analysts predict 6.5% growth annually—a decent rate globally, but far from the government’s 8% ambition needed to achieve high-income status by 2047.