The silver lining around India’s GDP cloud and what to do now4 min read 07 Sep 2020, 08:50 PM IST
The Q1 setback may have redeemed our data in critics’ eyes and rallied opinion for another stimulus
As per popular interpretations, the Indian data on gross domestic product (GDP) released on 31 August was full of dark clouds. Real GDP, as measured at constant 2011-12 prices, shrank 23.9% from a year ago. Nominal GDP had shrunk 22.6%. I was searching for a silver lining to the data. Some commentators saw agriculture and rural consumption as bright spots. Sure, they are. However, analysts have cast doubts on their sustainability by pointing to rising covid infections in rural India. There must be something else to cheer about. And I’ve found it.