Survey highlights private sector caution in post-pandemic economic recovery

NOOR MOHMMED

01/May/2025

Private sector caution is slowing India's economic recovery, with growth projections stable at 6.5% for 2024-25.
Government capital expenditure has been a bright spot, supporting growth in the post-pandemic economy.
A higher growth rate is necessary for India to meet its long-term economic goals.

India's economy has shown resilience after the pandemic, with growth estimated at 6.5% for 2024-25, and similar projections for the upcoming year. While this marks a recovery from pandemic disruptions, the nation's economic trajectory requires much higher growth to meet long-term development goals.
A key issue hindering further growth is the cautious approach taken by the private sector. After the sharp recovery post-pandemic, the private sector remains hesitant, which is impacting economic momentum. This caution is evident in the slow recovery across various economic sectors, which need to improve for sustained growth.
One of the positive factors in India's post-pandemic recovery has been the government’s increased capital expenditure. The government has ramped up spending to stimulate growth and support economic recovery. This focus on higher capital expenditure is designed to offset weaker private sector activity and boost growth outcomes.
However, for India to achieve its economic aspirations, the private sector's role will need to become more robust. While government intervention has been crucial, a balanced contribution from both the government and the private sector is essential for reaching higher growth rates. The Ministry of Statistics and Programme Implementation’s efforts to implement economic recommendations are steps in the right direction, but the economy needs broader participation and investment from all sectors for sustainable growth.

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Survey highlights private sector caution in post-pandemic economic recovery

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