India's economic growth is projected to slow significantly in FY25, with the first advance estimate indicating a real GDP growth rate of 6.4%, down from 8.2% in FY24. This marks the slowest growth rate since the pandemic, driven by a sharp decline in manufacturing growth from 9.9% to 5.3% and moderation in sectors like trade, hotels, and financial services. Addressing the implications of this slowdown for fiscal and monetary policy, Indranil Pan, Chief Economist at YES Bank, emphasized the need for targeted government interventions. He suggested that reviving growth requires a strong focus on supply-side measures, including fine-tuning employment and skilling schemes to generate jobs and enhance income distribution. Pan highlighted the urgent need for increased investment in agricultural R&D to address climate change challenges and stabilize food prices. He also underscored the importance of reducing costs related to electricity and logistics to boost manufacturing, pointing out that despite lower corporate tax rates, India’s manufacturing sector has yet to achieve significant growth. With these considerations, the forthcoming budget will need to balance short-term economic stabilization with long-term growth initiatives, particularly in employment generation, agriculture, and infrastructure.