New Delhi, June 6: India’s economy has recorded a growth rate of 7.7% for the fiscal year 2025-26. Bindu Dalmia, a former member of the NITI Aayog, shared her insights on the country’s economic status, employment, key growth sectors, and future challenges.
She stated that the Indian economy is moving in a positive direction. However, due to rapidly changing global conditions, vigilance will be essential in the coming times.
Dalmia pointed out that the biggest challenge facing India is not domestic but rather global circumstances. Ongoing wars and geopolitical conflicts in various parts of the world pose risks. Many countries are in conflict over regional rights and critical mineral resources, which could also impact India. The country’s growth rate, exports, and manufacturing sector are significantly influenced by global conditions. Increased instability in international markets could disrupt supply chains, affecting both production and employment.
She emphasized that India is progressing towards creating new job opportunities, but much work remains. While respectful and modern employment opportunities for youth are increasing, the situation is not yet fully satisfactory. A decline in MGNREGA figures in rural areas could be seen as a positive sign, indicating that people are turning to alternative sources of income. There is a pressing need to focus on the country’s per capita income and savings.
Discussing the key factors behind GDP growth, Dalmia noted that economic development does not stem from a single sector but is a joint contribution from agriculture, manufacturing, services, and investment. She warned that potential shocks in the energy sector remain a concern. If the monsoon is not favorable, food production could be affected, leading to inflation. During the COVID-19 pandemic, the central government had made significant public capital expenditures. Investments in roads, railways, airports, and other infrastructure projects played a crucial role in job creation. Infrastructure investment continues to be a cornerstone of India’s economic growth.
Dalmia stressed the need for India to rapidly improve regulations. Attention must be given to ‘Ease of Doing Business,’ ‘Ease of Living,’ and ‘Ease of Trading’ equally. She noted that the Indian stock market has emerged as a significant engine of growth. Regarding the 7.7% GDP growth for the fiscal year 2025-26, she remarked that this figure is not permanent or guaranteed. The world is currently undergoing major economic and political changes. The duration and intensity of conflicts in West Asia could influence India’s growth rate.
She also mentioned that the world is entering a new era of AI-based industrial revolution. At this time, India has taken significant steps to prepare itself. If India continues to focus on skill development, technology, and job creation, it can maintain its position as one of the fastest-growing major economies in the coming years.
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