India’s aspiration of being an economically developed economy is showing its signs with its incredible growth in recent quarters.
What’s daunting is the very fact of poorly conceived economic policy over the last times by the government.
There are massive contradictions in the economy in terms policies and predictions, yet the statistics speak the other side when the growth rates are splurging on the paper.
Is India becoming another China, with incredible growth momentum and statistics nobody quite believes? One hopes not. But the government should be careful to see the new numbers for what they are and aren’t.
In spite of government’s withdrawal of high-value currency notes from circulation and India’s GDP growth at 7 percent in the recent quarter corroborates this reasoning significantly.
On the other hand, After two bad monsoons, India finally enjoyed a good one last year, which tends to drive up demand and growth.
The Indian industry Companies may have delayed cutting production after the note ban to let inventories build up first so that they don’t loose in the post note embargo period.
But It still looks a baffling situation where a lot depends on the better concrete policies and its implementation in real. Till then, India’s government would be wise to take its numbers with a grain of salt.
Photo credits – india.com