Economists have advised Finance Minister Nirmala Sitharaman to shift the government's focus from revenue maximisation to promoting economic growth. They have called for a reevaluation of the current fiscal consolidation trajectory and key taxation policies, stressing the importance of prioritising growth for India's long-term economic interests.

The economists have emphasized the need to balance fiscal prudence with growth imperatives, especially considering global uncertainties. They have suggested that the government's recent emphasis on increasing tax collections could impede economic growth and have recommended a reconsideration of the recently raised capital gains tax and GST policies.

India's GDP growth for the second quarter was reported at 5.4 percent, which was lower than expected. As a result, the Reserve Bank of India's Monetary Policy Committee has revised its GDP growth forecast down to 6.6 percent from 7.2 percent. This slowdown highlights the urgency for policymakers to adapt their strategies to stimulate economic activity.