The worst seems to be over on the economic front for India and the BJP-led Narendra Modi government at the centre. If the January-March 2018 numbers are anything to go by, the Indian economy seems to be on a sound footing and on revival mode at 7.7 per cent GDP growth, the fastest in the last seven quarters. Sceptics have been quick to point out that ground reality does not reflect the positive mood that such figures would provoke in the world’s fastest growing economy. Instead, some economists attributed the strong growth numbers to ‘more formalisation of the economy’ in the aftermath of demonetising high-value currency notes in November 2016. Data points were more spread and several small and medium businesses were now captured in GDP growth numbers. Otherwise, the economic activity was muted, marked by pessimism and joblessness was all-pervasive, they pointed out. The low-base effect of modest numbers in the earlier quarters was also cited. A subtle and gradual shift in economic activity towards formalisation cannot be missed. Structural reforms like GST, digital payment systems have definitely shrunk cash economy that may not necessarily be illicit or illegal. Economic affairs secretary Subhash Chandra Garg did point out that structural reforms reflected in strong GDP numbers and it would only get better. Construction (11.5 per cent), manufacturing (9.1 per cent) and agriculture (4.5 per cent) were three major areas where growth revival was reported. Secondly, pick up in fixed capital formation reflected in 6.7 per cent private consumption growth also hints at a huge revival in investment (32.2 per cent) sentiment – public and private – in a big way. Strong growth of 4.7 per cent in eight core sector industries during April 2018 indicates consolidation in the India growth story as Prime Minister Modi prepares to seek a second term. More than 100 per cent monsoon forecast in second advance estimates would mean farm growth would be healthy for the second year running. This will again add to growth impulses. Nevertheless, over $10 per barrel increase in crude prices over the last few weeks have forced Moody’s to lower growth estimate to 7.3 per cent while the finance ministry continues to peg GDP growth this fiscal at 7.5 per cent. While the finance ministry sees no linkage in hardening of crude prices with GDP growth, economists cited consumption demand getting impacted owing to high inflation and consequently debt funds becoming expensive. This may pull down GDP by 20-30 basis points. While OECD put growth numbers at 7.4 per cent, industry lobby group, Ficci, endorsed the OECD projections. The 9.1 per cent growth in manufacturing during January-March 2018 was a huge positive. But, the centre will have to initiate a series of measures to further push up manufacturing that will help India touch 8 per cent GDP growth. The centre may have to boost merchandise and services exports through a fiscal incentive package. This will add to growth momentum in the economy. Secondly, the private sector will have to take on the larger responsibility by committing funds for both green field and brown field projects. Thirdly, infrastructure projects execution may have to be hastened up to aid growth. Fourthly, long-term sustainability of 8 per cent plus growth should be the government’s avowed objective.