Economy: Growing concerns

Despite India’s incredible transformation over the last three decades into $1.8 trillion economy, the government’s annual economic survey continues to see the government as synonymous with the economy and not just as a part effect. Keeping this in mind, in a four-part series, Mint profiles the three-key stakeholders—the government, corporates and households—and the country’s single biggest challenge—the resource constraint. In the first part, we look at the government, the macroeconomic context within which it operates, and the areas of concern.

External sector

Increasing pressure

Real sector

Growth bottoming out, temporary relief in inflation due to base effect

Government finances

Fiscal strain mounts

*advance estimates, #analysts’ expectations, BE: budget estimates

Financial sector

Growing cost of credit

Also See | Economy: Growing concerns ( PDF )

Also Read | The Budget as an inflexion point

Source: Budget documents, CSO, RBI and Mint research