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Worrying signals from the markets

Investors are getting increasingly concerned about the extent of capital issuance in the financial sector

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Illustration: Binay Sinha

6 min read Last Updated : Jul 21 2020 | 12:25 AM IST

As has now been spoken about ad nauseam, investors are worried about the long-term growth outlook for India. What is India’s true structural growth rate? How quickly and to what level will growth rebound in FY22, after the pandemic shock? Was Indian growth truly overstated as Arvind Subramanian seems to imply?

The debate on growth is an important one, and depending upon what comes out of this debate, India seems either very attractive or not interesting at all.

The growth dynamics affect most of our long- term macro variables. Debt sustainability being the most critical. If India does not get

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : Coronavirus financial market stock market Gross domestic product PSBs

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