Regional imbalance

Focus on equitable growth

As the Indian economy is recovering from the pandemic-induced disruption, one of the biggest challenges for policymakers is to enable it to attain higher sustainable growth in the medium term. The task has become more challenging because of global headwinds. Besides, India’s own weaknesses could affect potential growth. Higher public debt, for instance, will be a drag. On the positive side, India’s corporate and bank balance sheets have improved and can support growth. It also has large foreign exchange reserves, which is helping in dealing with external pressure. While reviving growth in the medium term would be a challenge, India