The referent of the pronoun NP6 ( )(It) is ( a )(India's economy).
head of the span NP2 (a )(economy) has two modifiers NP1 ( ) (India's) and VGNF1 ( )(falling) as shown in the diagram below : nmod only NP1 is required as a modifier of NP2 for the correct interpretation of the pronoun.