India's Economic Challenges and Global Geopolitical Shifts
India's Economic Challenges and Global Geopolitical Shifts

India's Economic Challenges and Global Geopolitical Shifts

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India's economic landscape faces scrutiny as GDP growth slows to 5.4% in Q2, the lowest in seven quarters, with inflation and weak manufacturing sectors posing challenges. The government aims to revive growth through increased spending and rural consumption, projecting a full-year expansion of 6.5%-6.7%. Inflation, driven by rising food prices, remains a concern, prompting policymakers to maintain control within the RBI's target. The 2025 budget is viewed as a key opportunity for reforms, such as expanding the PLI scheme and simplifying GST, to boost global competitiveness. On the global stage, Donald Trump's upcoming inauguration signifies a shift towards a 'G-Zero' world, prioritizing national interests over global leadership and increasing geopolitical tensions. The Eurasia Group highlights Trump's consolidation of power and potential for international disruption, alongside the influence of figures like Elon Musk.

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