The Finance Ministry said on Tuesday that amidst global uncertainty, India has an opportunity to strengthen its position in international trade and manufacturing sector, but private sector and policy makers need to be careful towards these challenges and avoid preventing capital creation.
The Finance Ministry has said in its monthly economic review for March, ‘Private sector can stop plans for capital creation with prolonged perception. Private sector and policy makers need to be conscious of this risk. Also, immediate action should be taken to prevent uncertainty from dominating itself.
The Finance Ministry, stating the risks to an increase in FY 2025-26 due to global activities, said, ‘India may reduce these risks, with constant focus on geopolitical developments. The country can take advantage of emerging opportunities in strategic trade talks, domestic reforms and manufacturing investments.
Emphasizing the importance of private capital creation according to India’s long -term growth, the Finance Ministry said, “Both the policy and regulatory steps of the government can help the private sector play their role.” The Ministry of Executive has emphasized on close watch on the risk arising from the global trade obstacles at this time and diversification in the markets, where the possibilities have not been raised till now.
It said, ‘It is time for the private sector to diversify its products and quality correct canare, as the easy option has now become a thing.’ It has been said in the meantime that capital creation can create a mutually strong cycle of investment-boys, growth-growth, growth-growth capacity creation for a larger domestic economy.
It said, ‘Unlike normal days, now action and implementation is more impact now. This is an opportunity that should not be lost. The global growth is at risk going down due to geopolitical tension, disruption in supply chain, fees and business uncertainties, while the government’s approach to the Indian economy remains positive.
The Finance Ministry said that despite the turbulent global scenario, the economy is continuously showing flexibility and the speed of growth is being supported due to decrease in inflation, increasing demand for consumption, fiscal discipline, stability in the labor market and flexible of the financial sector.
The report said that compliance, investigation and logistics difficulties have become necessary than before.
The march review also states that the landscape of inflation has improved overall, the interest rate has been supported and the prices of food items are in the right direction, but it warns that there is a need to monitor the non -violent uncertainties.
First Published – April 29, 2025 | 10:28 PM IST
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