Open4Discuss

GDP Growth Initiatives: The Indian government is implementing measures to achieve a GDP growth target of 6.5%-7% for the current fiscal year. This follows slower-than-expected growth in the July to September quarter due to weaker manufacturing and consumption. Economic Affairs Secretary Ajay Seth expects growth to accelerate in the second half of the fiscal year. Prime Minister Narendra Modi plans to boost infrastructure spending as part of a $576 billion budget plan. Additionally, India is increasing incentives for electric vehicle manufacturers and plans to amend insurance laws to raise the FDI limit to 100%.

Trade Dynamics: The recent surge in imports of Chinese steel into India has caused concern for the Indian steel industry amidst increasing U.S.-China trade tensions. In the first seven months of the financial year, Chinese steel imports into India rose by 35.5%, reaching an all-time high and lowering domestic prices. This jeopardizes India's ambitions to boost steel production capacity. India is balancing its stance to avoid further trade disputes with the U.S., as President Trump may push for tariff reductions and increased tariffs on Indian goods.