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Economy

Green shoots or mirage? Early signs show a rise in gross savings. But there’s a missing piece.

Despite all the pessimism surrounding the state of India’s economy, some analysts and economists have spotted early signs of a recovery. While a few opine that the growth cycle may have bottomed out, a brokerage house recently put out an interesting research report with three key findings. However, they are counterintuitive when viewed from a different prism. Here’s why.
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9 Dec 2019 6 Mins Read 0 comment
Concept by Muhabit ul haq; photo by Getty Images
Concept by Muhabit ul haq; photo by Getty Images
Dream: A USD5 trillion economy. Reality: GDP growth at six-year low, inflation at 16-month high, and fiscal deficit above the full-year target. It’s official. The slowdown is here, and it’s grim. What’s not, however, is that it borders stagflation and India seems to be headed more towards the “Hindu rate of growth” of the pre-liberalisation era
with monetary interventions can ensure optimum advantages from rising household savings. At the same time, low leverage in the corporate sector and high household savings will help augment investments. But for that, strong will from the government is needed. Else, the dream 2024 will remain just a dream for far too long. ( Graphics by Abdul Shafiq)
Dream: A USD5 trillion economy. Reality: GDP growth at six-year low, inflation at 16-month high, and fiscal deficit above the full-year target. It’s official. The slowdown is here, and it’s grim. What’s not, however, is that it borders stagflation and India seems to be headed more towards the “Hindu rate of growth” of the pre-liberalisation era with monetary interventions can ensure optimum advantages from rising household savings. At the same time, low leverage in the corporate sector and high household savings will help augment investments. But for that, strong will from the government is needed. Else, the dream 2024 will remain just a dream for far too long. ( Graphics by Abdul Shafiq)

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Inside CRED: Freecharge founder’s ‘contrarian’ bet needs definition, monetisation plan, and speed
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Inside CRED: Freecharge founder’s ‘contrarian’ bet needs definition, monetisation plan, and speed

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