As the global economy grapples with its severest crisis since the pandemic, India has caught a particularly biting strain of the flu. Geopolitical tumult—Russia’s grinding war in Ukraine, Israel’s bombardment of Gaza and now Donald Trump’s killer tariffs—has disrupted global trade and dented investor confidence. That third factor hits directly at India’s momentum. We hold on to our crown as the world’s fastest-growing major economy, but growth remains stuck in second gear: GDP grew a middling 6.5 per cent in the fiscal year ending March 2025, and the prognosis does not seem too good for this year either.
