The Indian Economy is at a crossroads as it looks at an increasingly volatile world, where policies from Washington are acquiring an increasingly unreliable posture.
In this time of instability, the Indian economy would look to tread on the path, that invokes minimum damage to the world's most populated nation.
Economy Creaking?
While talking about the state of the economy, senior economist Kaushik Basu, who is also a professor of economics at Cornell University, & former Chief Economist of the World Bank & Chief Economic Adviser of, the Government of India, shared his thoughts on challenges looking at the economy.
In a post on X, Basu said, "Despite strong fundamentals India’s economy is creaking—the rupee depreciated sharply cutting people’s buying power, youth unemployment is high, growth is slowing, pollution is among the world’s highest. These are solvable & India has the talent. It has to use it."
Mohandas Pai Reacts
Mohandas Pai reacted to this post with his thoughts on the matter.
Mohandas Pai, the former Chief Financial Officer or CFO of Infosys is known for his explosive takes on X. Pai, who is seen as a staunch supporter of the BJP government in the centre, who has often defended the government and its policies.
In his post, Pai said, "What a joke! 6.5 per cent is the highest growth rate amongst large countries, individual IT payments up by 20 per cent and he says economy is creaking!"
India's Q3 GDP Improves
The Indian economy has had an interesting past few months. After a fall in the quarterly GDP growth in the second quarter of Q2FY25 (July-September), when the Indian GDP growth dipped to 5.4 per cent, the GDP growth rate increased.
India has a GDP growth rate of 6.2 per cent in the third quarter or Q3FY25. In addition, the rate of inflation in the most recent month (for February) came down below the RBI threshold of 4 per cent, easing to 3.61 per cent.
