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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The economy grew strongly despite several headwinds, with the policy responses mostly fitting the need. How sustainable is the growth rate, though?
The Indian economy is expected to close 2025 with a growth rate of 7.5%. Barring recoveries from a growth collapse—like after the 2008-09 global financial crisis or the COVID-19 shock—this is close to India’s two best-performing years this century: 2007 (9%) and 2015 (8%).
The drivers of growth in 2025 are quite different from those in preceding high-growth years, though. Private investment has lagged; government spending (at an expected contribution to growth of just 0.5% in 2025, down from 1% in 2007 and 3% in 2015) has been muted; and the growth of transfer payments and subsidies is slowing.
Nonetheless, …
FY26 numbers for the three major CV makers show resilience and all-around growth. This doesn’t look anything like the undifferentiated sector it once was.
The regional economy is expected to take a big hit in 2026, venture capital activity is starting to show signs of strain, and Saudi Arabia’s sovereign fund has a new investment strategy.
Though the war in the Gulf is pinching the Indian economy, things aren’t too bad. But much needs to be done if the situation drags on or worsens, rather than waiting for it to come to pass.
