India’s GDP data reveals some disquieting details
SummaryThe headline figure points to healthy growth, but weakness in private consumption and farm growth that isn’t validated by other indicators calls for attention of our policymakers
In the absence of any alternative measurement yardstick, gross domestic product (GDP) has become the optimal, albeit imperfect, statistical tool for measuring an economy’s performance. Alternative indices have been proposed in the past (such as a human development index), but GDP has this incredible capacity to demonstrate which specific parts of the economy are humming and which ones are operating sub-par. India’s gross domestic product (GDP) for 2022-23, released on 31 May, shows a year-on-year 7.2% growth, thereby exhibiting a sharp rebound from the stasis that had set-in pre-pandemic and was reinforced by the pandemic. The strong showing is on the back of smart services growth, with tourism and hospitality-related services showing a brisk 14% growth, construction following close behind at 10%. The robust 7.2% growth in the economy has come at an opportune moment and will hopefully manage to extinguish growing national despair over price rise and shrinking job opportunities.