Mumbai (Monitoring Desk): Weakening economic indicators in India have exposed the reality behind Prime Minister Narendra Modi’s claims of development. According to a report by the international news agency Reuters, ongoing regional tensions and war-like conditions have negatively impacted the Indian economy.
The report states that due to the conflict in the Middle East, Indian shares have fallen to their lowest level since March 2020. Similarly, amid Pakistan-India tensions, U.S. trade pressure, and disputes linked to Iran, shares of Indian banks have recorded a decline of around 2.5 percent.
Economic experts say that the Middle East situation has also affected India’s private sector, which has dropped to its weakest growth rate in the past three years. Furthermore, India’s GDP growth rate has declined from 8.4 percent to 7.8 percent.
A potential closure of the Strait of Hormuz has also added to the burden on the Indian economy, with oil prices rising by more than 40 percent. On the other hand, Indian authorities have expressed concerns over an increase in the current account deficit, which has reached 1.3 percent.
Global experts believe that due to the failure of government policies, India is facing crises related to energy, currency, and remittances, while the confidence of foreign investors has also been severely affected.
