GDP growth in 202425 seen at 6.4, slowest in four years
Calls for India to loosen monetary, fiscal settings grow
Modi appoints new central bank governor amid focus on growth

NEW DELHI, Jan 8 Reuters After worldbeating economic growth last year, India39;s policymakers are scrambling to head off a sharp slowdown as worsening global conditions and domestic confidence wipe out a recent stock market rally.

On Tuesday, Asia39;s thirdlargest economy forecast annual growth of 6.4 in the fiscal year ending in March, the slowest in four years and below the government39;s initial projections, weighed by weaker investment and manufacturing.

The downgrade follows disappointing economic indicators and a slowdown in corporate earnings in the second half of 2024, which have forced investors to rethink the country39;s earlier outperformance and cast doubts over Prime Minister Narendra Modi39;s ambitious economic targets.

The fresh worries are heightening calls for authorities to lift sentiment by loosening monetary settings and slowing the pace of fiscal tightening, especially as Donald Trump39;s looming second presidency throws more uncertainty over the global trade outlook.

You have to revive the animal spirit, and you also have to ensure that consumption picks up. It39;s not that easy, Madhavi Arora, chief economist at Emkay Global Financial Services, said, adding India could expand its fiscal balance sheet or cut interest rates.

Such calls come amid a flurry of meetings by…