What GDP data doesn't show: Structural weakness and real living standards

India has not made enough progress in improving living standards. While the country has climbed international rankings, the progress remains slow

The latest gross domestic product (GDP) data shows India’s economy is recovering, with growth rising from 5.6 per cent in July-September to 6.2 per cent in October-December, and an estimated 7.6 per cent in January-March. At this pace, India is set to become the world’s fourth-largest economy. However, before we start celebrating, we need to examine the economic situation more carefully. Upon doing so, we’ll find significant weaknesses, indicating that substantial policy work remains.

 

To begin with, investment remains too weak to drive rapid growth. In 2024-25, real investment is expected to rise by a mere 6 per cent, trailing