4 min read.Updated: 22 Jun 2022, 11:25 AM ISTAlok Sheel
Investment and consumption must spurt for the economy’s base effect not to spell deceleration after two years of fast expansion
Following a 6.6% contraction in real gross domestic product (GDP) in 2020-21, the Central Statistics Office (CSO) has provisionally estimated that headline growth in 2021-22 recovered smartly to 8.9%. Further, in its April 2022 World Economic Outlook, the International Monetary Fund (IMF) projects that India would grow at 8.2 % in 2022-23 and 6.9 % in 2023-24. (For comparison with other countries, the IMF’s growth estimates for India during calendar years 2022 and 2023 are 8.9% and 5.2% respectively). The IMF expects India to be the fastest growing major economy during all three years. Is this the much talked-about “V-shaped recovery" that has at long last put the faltering Indian economy back on track?