There is a wide consensus that India’s gross domestic product (GDP) will grow at around 9-10% in 2021-22.
When macroeconomic indicators all point in the same policy direction, policymaking is straightforward. However, policymaking in the real world is not so simple. The economy is monitored with the use of a whole range of indicators, which may be pointing in different policy directions. Such mixed signals, as we are seeing now, makes macroeconomic policy quite challenging.