Business Standard

How is the Indian economy really doing?

All the heady optimism has overlooked the vulnerable state of the macro-economy. Caution, not complacency, is the more appropriate sentiment for now

Photo: Bloomberg

Over the past few years, there were periods when the economy contracted sharply, distorting year-on-year comparisons

Abhishek AnandJosh FelmanArvind Subramanian
A cross-section of opinion, from captains of Indian industry to the Managing Director of the IMF, has been gushing praise for India. For them, India is one of the few bright spots in the global economy, with double-digit GDP growth and a prospect of taking over as the next China.

What should one make of these claims? Is the Indian economy truly booming? The short answer is that the latest data flatters to deceive. The economy is out of the ICU, but its health remains fragile and still needs the doctor’s attention.

Assessing the economy today requires accounting for two
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Sep 28 2022 | 10:25 PM IST

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