In India, January every year ushers in a euphoric moment for professionals and businessmen alike due to the old debate built around the general budget with a largely reductionist approach focussed mainly on the income tax ceiling. The purpose here, however, is to broaden our understanding of the dynamics of India’s evolving political economy, and its current trend and direction, because a vibrant democracy without creative efforts to reset economic governance is inconceivable.

It is a daunting challenge before the nation because without innovative reforms not only will our growth curve plateau but also the equity aspect, even within an overall neoliberal competitive scenario, will be scuttled. At the same time, we need to be cautious that now the new anxiety of HMPV virus might engulf the Chinese economy. Moreover, the situation in Bangladesh might challenge expected performance of sub-regional groupings like BBIN, BIMSTEC, apart from India’s Look East policy. As a result, efforts to woo foreign investment may not be as successful at the moment. The current economic landscape in India presents both opportunities and challenges, requiring a delicate balance between growth-oriented policies and inclusive development. A comprehensive approach to economic governance could involve assessing tax structures, promoting innovation across sectors, and strengthening regional economic cooperation both at home and abroad.

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Additionally, our policymakers must remain vigilant about global economic trends, now inseparable from health and geopolitical concerns that could potentially impact India’s economic trajectory and foreign investment prospects. On the other hand, India’s economic health will depend not on short-term adjustments like the central bank’s repo rate, but on long-term vision. Since the 18th Lok Sabha election in early 2024, when the BJP’s majority got shrunk considerably, it will be interesting to see how the party comes up with a reformist or conservative qua protectionist stance through budgetary policies.

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Despite speculation, it seems settled that the party will navigate choppy waters to boost venture funding for start-ups in new sectors like e-vehicles and biotech, while synergising with capital........

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