India's economy grew at a slower rate of 5.4% in the second fiscal quarter, falling short of expectations and marking a decline from the previous quarter's growth of 6.7%.
Despite this, there are positive indicators in specific sectors such as agriculture and consumer spending.
The Reserve Bank of India (RBI) has noted improvements in consumer and business confidence, as well as expectations of enhanced external demand.
Looking ahead, economists have provided cautious outlooks for India's economy, with projections ranging from 6% to 7.2% growth.
The country's consumer market is expected to become the world's third largest by 2027, driven by an increase in middle to high-income households.
The agricultural sector's performance is crucial for sustaining economic growth, and favorable weather conditions and strong crop yields are likely to support rural incomes and consumer spending.
India is also expected to benefit from enhanced external demand as global trade volumes improve.
The country's strategic positioning in the global market will be important for its long-term growth prospects.