Wages and earnings do not back the euphoria over our economy
- These still trail pre-pandemic levels in real terms and should temper the excitement over strong GDP
How is the economy doing? The answer depends on the lens from which it is viewed. Based on the aggregate data from the national accounts, there is a general sense of euphoria that the worst phase of the economy marked by the pandemic-led disruptions and the slowdown that preceded is now almost over. With gross domestic product (GDP) for the April-June quarter having grown 7.8%, most projections suggest annual growth this year to be in the 6-6.5% range. That’s still lower than the average rate of growth a decade back, but at least it appears to be back in the ‘normal’ range for the Indian economy.