RBI and analysts claim India has discovered a higher growth trend of 7%, implying that the economy will grow faster than previously assumed. EPISODE #156
Very encouraging signs for the Indian economy. The government has given a boost to growth by policies like make in India and sustained investment in infrastructure development. The record Sensex at over 71k and Nifty above 21k are partly due to foreign investors avoiding China as an investment destination. Inflation is a result of growth but sudden spikes in especially vegetable prices in a country with a huge population, is not a good thing; although these are results of floods, droughts, landslides and other climate change factors. Partly political gamesmanship and hoarding are also sometimes the cause. This government has taken appreciable proactive measures to periodically check the exports of foodgrains and other commodities like onion, to keep the food inflation in check. The free distribution of food items, subsidised cooking gas to BPL families, ever since the Covid period, has also enabled the population at the bottom to keep afloat during tough times. Hence it is but natural that India should be on the turnpike. Interesting and thoughtful article Anil.
Dec 18, 2023·edited Dec 18, 2023Liked by Anil Padmanabhan
While the growth optimism is fine and indeed based on facts, we must remember that we need many more reforms to exorcise the ghosts of Nehru Indira socialist times. Our governance is ineffective and corrupt. We need to weed out corruption and black money from the economy. Growth is just the result of variety of factors. Modi does not have unlimited time and mus TVt hurry up to completely clean the stables before his next term ends. Apart from internal issues, we must manage impact of external geo political events too. Modi now has an extremely competent team of ministers and hence, all depends on Modi how he takes this forward.
Thank you for your thoughts. I do agree that India does not have the luxury of time on its side. At the same time it has to negotiate the global mine field of geopolitics where it is difficult to distinguish friend from foe.
Frankly I believe that India has hit critical mass. That is what the RBI and Neelkanth Mishra are saying when they say India is on a new trend rate of growth--7%. We are seeing it in the scale of achievements of public good at global scale. Whether it is banking, reducing poverty, digital transactions, roll out of infrastructure. All of this add up and create a compounding effect, which is beginning to happen--at least that is my surmise.
Very encouraging signs for the Indian economy. The government has given a boost to growth by policies like make in India and sustained investment in infrastructure development. The record Sensex at over 71k and Nifty above 21k are partly due to foreign investors avoiding China as an investment destination. Inflation is a result of growth but sudden spikes in especially vegetable prices in a country with a huge population, is not a good thing; although these are results of floods, droughts, landslides and other climate change factors. Partly political gamesmanship and hoarding are also sometimes the cause. This government has taken appreciable proactive measures to periodically check the exports of foodgrains and other commodities like onion, to keep the food inflation in check. The free distribution of food items, subsidised cooking gas to BPL families, ever since the Covid period, has also enabled the population at the bottom to keep afloat during tough times. Hence it is but natural that India should be on the turnpike. Interesting and thoughtful article Anil.
While the growth optimism is fine and indeed based on facts, we must remember that we need many more reforms to exorcise the ghosts of Nehru Indira socialist times. Our governance is ineffective and corrupt. We need to weed out corruption and black money from the economy. Growth is just the result of variety of factors. Modi does not have unlimited time and mus TVt hurry up to completely clean the stables before his next term ends. Apart from internal issues, we must manage impact of external geo political events too. Modi now has an extremely competent team of ministers and hence, all depends on Modi how he takes this forward.
Dear Surendra,
Thank you for your thoughts. I do agree that India does not have the luxury of time on its side. At the same time it has to negotiate the global mine field of geopolitics where it is difficult to distinguish friend from foe.
Frankly I believe that India has hit critical mass. That is what the RBI and Neelkanth Mishra are saying when they say India is on a new trend rate of growth--7%. We are seeing it in the scale of achievements of public good at global scale. Whether it is banking, reducing poverty, digital transactions, roll out of infrastructure. All of this add up and create a compounding effect, which is beginning to happen--at least that is my surmise.
Looking forward to your continued participation.
Best
Anil