Will India\'s growth potential slip below rates achieved in 1980s and \'90s?

Will India's growth potential slip below rates achieved in 1980s and '90s?

The forces causing the growth slowdown and rising inequality were there before Covid-19, and these trends are now getting accentuated, writes T N Ninan

Topics
Indian Economy | Weekend Ruminations | Gross Domestic Product (GDP)

T N Ninan 

T N Ninan

Amidst the flood of commentary that followed the finding that the world’s fastest-growing large economy had become its fastest-shrinking one, an observation that stood out was that India’s growth potential had dropped from 6 per cent to 5 per cent.

Now, it has been obvious for some time that India will emerge from the Covid-19 recession with a record fiscal deficit, record public debt (both in relation to GDP), a fresh lease of life for the “twin-balance sheet crisis” confronting banks and companies, complex monetary challenges, and consequently reduced growth ...
First Published: Fri, September 04 2020. 17:57 IST