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Foreword
The global economy is navigating a period of
extraordinary flux and structural transformation.
Geopolitical realignments are reshaping trade
flows, financial systems, and strategic alliances,
testing long-standing norms that have underpinned
global stability. The rule-based trading framework,
that once underpinned globalization, is under
strain, even as new norms of trade are still taking
shape. Meanwhile, the intensifying rivalry between
the United States and China over technology and
resources adds renewed complexity and volatility
to global commerce. These shifts are redrawing
patterns of trade, investment, and supply chains
along geopolitical lines, forcing nations and
businesses alike to reassess their strategies.
Amid this fluid environment, the October edition of
the IMF’s World Economic Outlook (WEO) has
raised its global growth forecasts for 2025,
suggesting that downside risks have eased since
April. Nonetheless, the risks to global growth
remain elevated driven by geopolitical tensions,
rising protectionism, persistent policy uncertainty,
ongoing conflicts and the growing policy
divergence among major economies. These
factors, combined with high debt levels, climate
change challenges, and supply chain realignments,
threaten to disrupt trade flows, slow economic
growth, and create uncertainty for businesses and
The current global disruptions should investors.
be viewed not as a moment of crisis,
but an inflection point, a chance to In contrast, the Indian economy stands out as a
deepen competitiveness, accelerate bright spot amid global headwinds. Supported by
resilient domestic demand, prudent fiscal &
structural reforms, and drive monetary management, and strong
sustainable, inclusive growth on the macroeconomic fundamentals, India’s economy
path toward Viksit Bharat 2047 has demonstrated remarkable resilience. The
first-quarter GDP growth of 7.8 per cent, a
five-quarter high, was a noteworthy achievement,
Chandrajit Banerjee accompanied by the first sovereign rating upgrade
Director General, CII by S&P in nearly two decades. Reflecting this
strong performance, the IMF has revised India’s
growth projection upward by 20 basis points to 6.6
per cent for the current fiscal year.
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