Mumbai: Finance Minister Nirmala Sitharaman will present her record eighth budget to Parliament on February 1. This is her second one during the third term of Prime Minister Narendra Modi. Her last seven budgets have seen ups and downs, the biggest being the disruption and shutdown of major parts of the economy during the covid pandemic. That year GDP went down by nearly seven percent.

In the last four decades that year was the only time that India’s economy contracted, i.e. reported a negative growth rate. While growth has been positive during her reign as FM, presently the economy is facing several challenges which are formidable. The Economic Survey 2024-25 tabled in Parliament on the eve of the budget is also quite somber in its tone. It is acutely aware of the fact that unless domestic investment and consumption picks up and foreign investors come in droves, economic growth is going to be a challenge. After three years of relatively good growth, we are facing two consecutive years of slowing down. The reasons are both global and domestic.

The global turmoil is led by actions of President Donald Trump. In the very first few weeks of his presidency, he has passed many executive orders with potentially unsettling effects. For instance, he threatened countries with trade sanctions if they do not accept the........

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