Persistent global turbulence is always going to adversely impact the investment climate, which may be further aggravated by domestic conditions. Apart from interest rates, investment activity, which is critical to sustaining high growth with low inflation, is also sensitive to a number of other factors.
Policy actions, both on the fiscal and regulatory fronts, that can favourably impact the investment climate will be critical to mitigating the risks to growth. These run the gamut from tax reform to land acquisition to skill development. A number of initiatives on each of these fronts are visible, but quick resolution and implementation is the key.