16 January, 2021

Optimism Swirls As GDP Grows At 8.2%. Will It Hold?

The surge is a two-year high and gives the government the device to parade an economic rebound before general elections next year. But aside the drum beat of praise one may well ask if the economy is really recharged?

Illustration by Sajith Kumar
Optimism Swirls As GDP Grows At 8.2%. Will It Hold?
outlookindia.com
2018-09-09T08:27:09+05:30

The Indian economy held out hope and inspired optimism with an 8.2 per cent growth in the first quarter, in the three months through June, despite headwinds such as spiraling crude oil prices that currently stand at over $78 a barrel and the rupee depreciating to 71.31 to a dollar as on September 4. The surge is a two-year high and gives the government the device to parade an economic rebound before general elections next year. But aside the drum beat of praise one may well ask if the economy is really recharged? Is the uncertainty of policy changes—demonetisation in 2016 and the goods and services tax (GST) the following year— a thing of the past?

The response is mixed, divided. At one end are experts, like Raghav Gaiha of the University of Pennsylvania, who believes it is “over-optimistic” to think the Indian economy is out of the woods and to assert a big turnaround is largely mistaken, if not illusory. “I remain highly sceptical of the official GDP growth trajectory that rests on a methodology that is not fully transparent and lacks...

unsub

THIS ARTICLE IS PRICELESS...

To read this piece, and more such stories in India's most exciting and exacting magazine, plus get access to our 25-year archives goldmine, please subscribe.


More from Lola Nayar


Latest Magazine

January 25, 2021
content

other articles from the issue

articles from the previous issue

Other magazine section