South Asia and Beyond

The India Growth Story: Too Good To Be True?

In the last few weeks, we have seen the release of an array of economic data sets from the government. Together they present an exceptionally good macroeconomic backdrop.

India is flush with foreign reserves; retail inflation is decelerating and most importantly the private sector is poised to kickstart capital expenditure after being in funk for over a decade.

On top of it, new consumption figures confirm that India is trading up, even while gross domestic product rebounded at a scorching pace of 8.4% in the third quarter of 2023-24.

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All this is great news for any incumbent government, just weeks away from a general election. While this is indeed the case, how do we read these new economic trends.

Is it too good to be true? Or is it signalling that India is on the cusp of a significant transition to a rich middle-income economy?

To answer all this and more, Anil Padmanabhan spoke to Chennai-based Arjun Nagarajan, chief economist, Sundaram Asset Management on Capital Calculus.

Anil Padmanabhan

Anil Padmanabhan has been a journalist for the last 36 years. He has worked in various capacities in several publications including Afternoon Despatch & Courier, Press Trust of India, Business Standard, Mint and was based in New York for India Today. He was a Nieman Fellow in 2001. He tweets at @capitalcalculus.