Explained: Familiar problems linger, global uncertainties complicate picture

Helped by a late 7%-plus surge in the last quarter, India's real GDP in Financial Year 24-25 grew 6.5% on a year-on-year basis. Some tailwinds have continued on to this fiscal (FY26), with domestic economic activity exhibiting resilience in the wake of strong agri growth; some gains, albeit uneven, are seen in industrial activity; and there is continued buoyancy in the services sector. The domestic headwinds are familiar: stubbornly indifferent private capex, weak urban consumption, patchy rural recovery, some indications of household balance sheet stress, and a negative credit impulse. The uncertainty over tariffs imposed by the United States could…