Growth Boosters, Please

Some immediate measures are needed to avoid another disappointment in FY26

HERE WAS ALREADY considerable pessimism about the Indian economy's growth trajectory in FY25. High-frequency data as well as the commentary from companies have been pointing at weak consumer demand. The rise in goods and services tax collections, for instance, have consistently undershot nominal gross domestic product growth. Even in that background, the first advance estimates released by the government on Tuesday came as a surprise. At 6.4%, it's a four-year low, and is a sharp decline from the 8.2% growth in FY24. The advance estimates number will surely be achieved as growth in the second half of the fiscal year can be expected to easily clock a growth of 6.7%. But the headwinds could strengthen beyond that. If we have to avoid another disappointment in FY26, some immediate measures need to be taken to resuscitate demand.