6. Challenges India Must Navigate
Despite its strong growth outlook, India faces a set of challenges that require careful management.
6.1. Global Economic Uncertainty
Factors like rising geopolitical tensions, supply chain risks, and sluggish global demand could affect India’s exports and external financing conditions.
6.2. Rupee Weakness
A weaker INR increases import costs, especially for crude oil, electronics, and industrial machinery.
6.3. Inflation Pressures
Domestic inflation—particularly food inflation—remains a key concern for policymakers.
6.4. Need for Higher Employment in Manufacturing
While services drive growth, India must expand high-quality job creation in manufacturing and high-tech sectors.
6.5. Infrastructure Gaps
Despite major progress, India still needs:
- More urban infrastructure
- Better rail and freight connectivity
- Efficient water and power logistics
Addressing these gaps is crucial to sustaining long-term momentum.
