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For India, economic entropy presents both an opportunity and big challenge

Entropy, or the disorder in a system, is a concept not usually used to understand economic trends, but it best describes the disorder and randomness at work today, writes T N Ninan

Indian Economy | Weekend Ruminations | T N Ninan

T N Ninan 

T N Ninan

Since the start of 2022, clouds have been darkening over the economic horizon as short-term growth prospects dim, energy costs rise, the trade balance turns more negative, the fiscal balance deteriorates, portfolio capital flows out, the rupee drops, companies get more cautious, turn nervous, and consumers feel the inflation pinch. There are proximate causes for all of these, many of them global in origin, but it would be a mistake to focus on just them. Longer-term trends need to be understood.



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First Published: Fri, May 27 2022. 18:00 IST