Investment activity is anticipated to strengthen further, driven by high capacity utilization, ongoing infrastructure development, and robust financial conditions in both banks and corporates.

India's large domestic economy is expected to create a cycle of investment, income growth, and demand, which is essential for maintaining economic momentum.

While merchandise exports may encounter challenges due to global uncertainties, services exports are projected to remain strong.

Despite geopolitical uncertainties presenting challenges, they also offer opportunities for India to enhance its role in international trade and manufacturing.

Key drivers of India's long-term growth include macroeconomic stability, a resilient external sector, a declining fiscal deficit, easing inflation, and high consumption expenditure.

India's finance ministry report emphasizes that the economy is poised for steady growth, even amidst global uncertainties, provided that effective strategies and reforms are implemented.

The report underscores the critical role of private capital formation in achieving sustainable economic growth, suggesting that public policy can play a pivotal role in encouraging private sector investment.

Promising prospects in the agriculture sector are highlighted, thanks to healthy reservoir levels and strong crop production, while the manufacturing sector is also showing signs of revival.

Forecasts indicate a decline in food prices, attributed to favorable agricultural outputs and decreasing crude oil prices, although global trade tensions could pose risks to price stability.

The government's commitment to fiscal consolidation is enhancing domestic savings available for private investment, with a planned reduction in public debt to GDP expected to increase resources for investment.

Urban demand is on the rise, bolstered by increased discretionary spending, and there is optimism regarding employment conditions in the coming year.

The report cautions that prolonged global uncertainties could impede private sector capital formation plans, urging immediate action from both the private sector and policymakers to mitigate these risks.