India Budget: The need to reignite India’s economic growth to 7-8% took center stage at a high-level pre-Budget meeting between Prime Minister Narendra Modi and leading economists on Tuesday. The discussions, held as part of pre-Budget consultations, focused on strategies to maintain growth momentum amidst global economic uncertainties and position India on track to achieve developed nation status by 2047.Prime Minister Modi, in the pre-Budget meeting, highlighted the importance of mindset changes and structural reforms to capitalise on emerging global opportunities. The meeting, themed “Maintaining India’s Growth Momentum Amid Global Uncertainty,” was attended by key policymakers, including Finance Minister Nirmala Sitharaman and NITI Aayog officials, alongside top economic experts.Challenges underscoring the need for a growth push in BudgetIndia’s economic growth slowed to 5.4% in the July-September quarter of FY25, marking a seven-quarter low. This decline, attributed to weaker performance in manufacturing and mining, prompted concerns among policymakers. However, despite the slowdown, India retained its position as the fastest-growing major economy, surpassing China’s 4.6% growth during the same period.Economic institutions, including the Reserve Bank of India (RBI), revised their growth forecasts downward. The RBI now projects a 6.6% GDP growth rate for FY25, citing inflationary pressures and subdued domestic activity. Similarly, the State Bank of India adjusted its projection to 6.3%.Also Read – Income tax rate cut in Budget: Top economists urge Modi to lessen burden for IndiansHigh-frequency indicators, however, suggest signs of recovery, buoyed by festive demand and a revival in rural activities. Commenting on the situation, RBI Governor Shaktikanta Das stated, “The slowdown in domestic economic activity bottomed out in Q2 FY25 and has since recovered.”Strategic discussions on reforms in BudgetThe deliberations in pre-Budget meeting emphasised the need for targeted reforms across various sectors to restore growth. Experts recommended in the meeting before Union Budget interventions in agriculture, such as developing robust value chains for essential commodities like tomatoes, onions, and potatoes, alongside strategies to address climate change and energy transitions.Discussions at the meeting for Budget also focused on enhancing tax structures to encourage investment and consumption. Suggestions included reforms in both direct and indirect taxes to provide fiscal stimulus while ensuring long-term economic stability.Employment generation emerged as a key priority. Economists underscored the need to align education and vocational training programs with market demands and emphasized inculcating the dignity of labor as a cultural value.Also Read: Economists bat for new manufacturing policy, private investments push in pre-budget meet with FM SitharamanParticipants identified infrastructure development as a cornerstone for sustained growth. Mobilizing public and private investment to accelerate projects was proposed as a strategy to create jobs and improve overall economic productivity.Trade and export strategies were highlighted as critical areas requiring attention. Experts called for faster finalization of free trade agreements and measures to internationalize the rupee. These steps aim to enhance India’s integration into global value chains, particularly as the country looks to benefit from potential shifts in trade dynamics between the US and China.Balancing urban and rural priorities in BudgetWhile urban middle-class consumption has slowed due to inflationary pressures, rural development was identified as a key area for targeted growth interventions. Suggestions included enhancing agricultural productivity and creating sustainable employment opportunities in rural areas to bridge the urban-rural economic divide.Prime Minister Modi reiterated the government’s commitment to achieving developed nation status by 2047. This vision hinges on sustained economic momentum, with a particular focus on job creation, infrastructure expansion, and inflation management. The Prime Minister also pointed out that global geopolitical tensions, including a potential tariff war between the US and China, could open new opportunities for India to become a central player in global trade and manufacturing.Also Read: Budget 2025 may take a conservative path, peg nominal growth at 9.5%The pre-Budget consultations underscored a collective resolve to address India’s immediate economic challenges while building a resilient foundation for long-term growth. Policymakers and economists agreed that achieving 7-8% growth is critical to meeting India’s ambitious development goals.The meeting was attended by Finance Minister Nirmala Sitharaman, NITI Aayog Vice Chairman Suman Bery, CEO BVR Subrahmanyam, along with senior officials from the Prime Minister’s Office and the finance ministry. The panel of experts included notable economists and professionals such as Surjit S Bhalla, Ashok Gulati, Sudipto Mundle, Dharmakirti Joshi, Janmejaya Sinha, Madan Sabnavis, Amita Batra, Ridham Desai, Chetan Ghate, Bharat Ramaswami, Soumya Kanti Ghosh, Siddhartha Sanyal, Laveesh Bhandari, Rajani Sinha, Keshab Das, Pritam Banerjee, Rahul Bajoria, Nikhil Gupta, and Shashwat Alok.