A macro perspective

Macroeconomic stability with low inflation has been achieved with policy perseverance. Throwing the gains away would not be judicious

Indians now compare their living standards, not with their fathers’ and grandfathers’, but with those of countries to the east, particularly China.  From 1979, China, under Deng Xiaoping, stole the march over India. Between 1980 and 2013, it grew at an average annual rate of 9.9 per cent relative to India’s 6.2 per cent (Figure 1). With the magic of compounding, in US dollar terms, the Chinese economy, only 1.6 times India’s in 1980, became 5.2 times by 2013.
 
There were encouraging signs of India starting to catch up with China from 2014. In growth, among G-20, India improved