In its latest assessment, the National Council of Applied Economic Research (NCAER) highlighted that the Indian economy showcased resilience in January, even amidst prevailing global challenges. A key factor contributing to this positive outlook is the moderation of inflation rates, which has expanded the policy space available for economic maneuvering.

Poonam Gupta, Director General of NCAER, emphasized that the easing inflationary pressures have opened avenues for more accommodative policy measures, fostering an environment conducive to sustained economic growth.

However, the report also cautioned about potential trade risks that could cloud the recovery trajectory. While India maintains its position as one of the fastest-growing major economies, achieving the desired 8% growth rate remains a challenge, necessitating continued focus on structural reforms and investment in key sectors.