India’s economy is facing multiple challenges, with unemployment and rising prices emerging as top concerns. According to the Mood of the Nation Survey by India Today and C-Voter, more than three-fourths of Indians believe joblessness is a serious issue, and 64% in the Northeast and 60% in the East see it as very severe. Unemployment and inflation were identified as the biggest failures of the Modi government in its 11-year tenure, with 24% of respondents stating lack of jobs is India’s most pressing problem today. With 57% of respondents believing the economy will either stagnate or worsen in the next six months and 64% struggling with rising expenses, these challenges cannot be ignored. But the government’s response remains unclear.
At the same time, global trade tensions are intensifying. Prime Minister Narendra Modi’s meeting with Donald Trump focused on trade tensions, with India facing new reciprocal tariffs (6–24%) on key exports like iron, steel, and auto parts. This could weaken the rupee, stock markets, and capital inflows, putting further strain on India’s economy. PM Modi has until April 1 to negotiate a deal, likely offering concessions on Starlink and F-35 jets. Trump also wants India to buy more US oil and gas, which could raise costs and hurt India’s green energy plans. With a weak market, rising prices, and deported workers, India has big challenges ahead.
Meanwhile the situation in the banking sector is equally dire. With workforce shortages, increasing stress levels, and deteriorating work-life balance, public sector bank employees are struggling to manage growing business demands. The United Forum of Bank Unions (UFBU) has announced a nationwide strike on March 24 & 25, following mass demonstrations across the country on February 14. Their key demands include adequate recruitment, job security, withdrawal of unfair directives on performance reviews, and better working conditions.
-Team CFA