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Nobel laureate economist Abhijit Banerjee has warned that political polarisation in India is eroding transparency and making the country a "mystery" for global investors, even as the growth numbers remained robust. In an interview with PTI, Banerjee said from an economic standpoint, the most critical issues confronting the country today were media freedom and transparency, arguing that investors ultimately cared about data credibility rather than political rhetoric. "I think India is going through a politically polarised phase in the sense that there are many conflicts that have existed for a long time, and we have to decide, as a nation, to what extent we want to be seen as open and reliable. I think the real issues have to do with media freedom," he said. "The most important issues are media freedom and transparency. Do we really know what the numbers are? That's what investors care about," Banerjee said. While India has continued to attract foreign investment, he described the .
India, the world's fourth largest economy, is set to maintain the 'goldilocks' phase with tailwinds of good growth, low inflation and robust banking performance as well as reform initiatives poised to sustain the economic pace witnessed during 2025. Propelling the themes of ease of living and ease of doing business, the BJP-led Union government's next Budget is expected to unveil new measures to spur capital expenditure and private funding, making the country a more attractive investment destination amid tariff and geopolitical uncertainties. Real GDP growth accelerated through successive quarters, reaching 8.2 per cent in Q2 of 2025-26, while retail inflation slipped below the Reserve Bank's lower tolerance band of 2 per cent towards the close of the year. A government note said that, with a GDP of USD 4.18 trillion, India has surpassed Japan to become the world's fourth-largest economy and is poised to displace Germany from the third-largest rank in the next 2.5 to 3 years, with a