A recent UBS report raises crucial questions about India’s economic trajectory as it aims to become the world’s third largest economy. With a population of more than 1.4 billion, the country faces pressing issues such as inflation, consumer confidence, job creation and the implications of a busy election calendar. The report highlights five key areas of concern. First, India’s K-shaped consumption pattern, which suggests a potential shrinkage as affluent consumers show signs of fatigue, while lower-income segments could benefit from rural demand and government spending increased. Second, can India’s current growth phase of strong GDP growth be sustained amid external risks such as global slowdown and Chinese market pressures. Third, the changing composition of household savings, noting a shift from bank deposits to alternative asset classes, impacts bank deposit growth. The report also covers the possibility of deeper rate cuts by the Reserve Bank of India (RBI) in light of global monetary easing, and what this could mean for the recovery in capital spending. and the report covers concerns over fiscal profligacy in various Indian states, especially in the context of the upcoming elections, which could impact the overall economy. Watch Tanvee Gupta Jain, Chief India Economist at UBS Securities India, in conversation with Business Today TV Editor-in-Chief Siddharth Zarabi as we tackle these crucial questions and their implications for the future economic landscape of India.