Growth is strong, inflation is low; economic activity is neither too fast, nor too slow. This could squeeze the government’s capacity to lead growth through strong capital expenditure given the private sector’s disinterest in doing so. Most pioneer firms, notably the consumer-focused ones, recorded lower-than-expected earnings, raising doubts about consumption growth. This is explained by “technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability”, which together countered the trade policy shifts and uncertainties. For India, stronger private sector investment is the most critical to turn around economic prospects.

Source: The Telegraph January 27, 2026 01:26 UTC