Overview
Chairman and managing partner of EY India, Rajiv Memani stated that to boost economic growth in India, the government of India has to focus on factors such as deregulation of firms, tax relief to population on their personal income, expansion of capital spending, and also improvement in the business-friendly environment in India.

He further states that if the government of India implements these factors, and also raises funds from capital markets or disinvestments, it will help to observe if these factors can be implemented at faster speed to boost economic growth in the country.

Reason for weak economic growth
In recent times, the economic growth has weakened. The reasons for this are seasonal variations in several industries, and uncertainty among investors due to general elections. Apart from this, it is due to a number of geopolitical tensions in the world leading to an impact on pricing of international products. This has ultimately resulted in affecting the growth of GDP in India.

Steps to be taken for boosting economic growth
During the past few quarters, growth of India’s GDP has faced a slumping trend. The country’s annual growth is expected to grow by about 6.4 percent. Also, the budget 2025 is anticipated to have some capital spending plans which will help to boost the investment cycle in the economy and in turn stimulate economic growth of India.

In the previous six months, the lower consumption levels have resulted in slowdown in economic growth. He further states that tax relief in personal income will help stimulate consumption levels in the market. It will give relaxation to economic classes such as the middle-income and lower income population living in urban areas and also to the population living in rural areas. However, the government of India needs to make sure that it fulfills its promise of sustaining fiscal deficit at low levels, while implementing tax relief.

Adoption of ease of doing business and deregulation in the economy will also aid India’s GDP growth. Memani supported this idea with the plans of Trump 2.0 to lower the intervention of the federal government. He also believes that this will become a pattern followed by many countries in the world. He thinks that countries around the globe will take actions to make business easier to operate in the country. In present times, there are many regulations and requirements of approval to operate or start a business. Also, the process of finalisation of capital expenditure plans is also slow. If measures are taken to reduce this, it will help in boosting the economic growth in the country.