Global uncertainty is becoming a threat to economic development

New Delhi: Before the United States impose tariffs on business partners, the Union Finance Ministry has said that geopolitical stress, trade policy uncertainty and instability in international commodity prices and financial markets are a big risk to India and global economic growth next year. Thus, India should be careful with the pessimism prevailing abroad.

The February Month Economic Survey released by the Finance Ministry states that if the private sector invests with confidence in the strength of the Indian economy and its steady growth, the risk for development can be largely controlled.

The Finance Ministry has emphasized that the industry should identify the relationship between its investment expenditure and consumption demand. The ministry hopes that individual income tax exemption will give more money to the middle class to spend and increase in demand. The private sector should take inspiration from these measures and start investing in capacity expansion.

The ministry said that agricultural production estimates figures give positive indications for food inflation. The review states that retail inflation will decrease to 3.6 percent in February 2025 due to a recent fall in food prices. The Finance Ministry has estimated the growth rate of gross domestic product to be 6.5 percent in the current financial year, which is expected to be achieved. The GDP growth rate in the second quarter of FY 2025 was 5.6 percent, but it increased to 6.2 percent in the third quarter.

The monthly review of the Ministry said that domestic private capital construction focused on economic capacity will play an important role in promoting economic development in FY 2026. Economic growth rose in the third quarter due to strong performance of agricultural and service sectors in the supply side and continuous increase in consumption and exports of goods and services in the demand side.

According to the data available for FY 2025, the actual deficit, core ratio and required expenditure corresponds to budget estimates, which reflects constant commitment to fiscal targets. The budget focuses on measures and reforms to speed up long -term development in accordance with the ambition of India developed.

This increases confidence in domestic economic strength amid global uncertainties. The current labor market situation is stable and many employment surveys indicate that recruitment in upcoming quarters will accelerate.