An under-performing economy makes a very fertile ground for populism

Facts and logic lead to the conclusion that India should be ready for slow growth; since there won't be enough jobs for the young, the fallout will be political and social, writes T N Ninan

Once the dust raised by the elections has settled, a new government will have to deal with the economic slowdown. The issue to focus on is not the usual one of how long growth will stay in the 6.5 per cent region before moving back up to 7 per cent and beyond. First, because we should not assume automatic reversion to what existed before, and second because the credibility of the gross domestic product (GDP) numbers has been shredded. Instead, the focus has to be on real numbers that can’t be fudged, and these tell a troubling story.
 
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