While the overall growth rate has recovered, it is much below the potential growth rate of the economy even by government’s own standards. But while overall growth rate has recovered on the base of a recovery in manufacturing growth rate, these should be treated with caution given the lack of information on the informal sector. Finally, despite the recovery in global growth and global demand, the growth rate of exports has remained stagnant at 1.2%. Clearly, signs of economic recovery based on second quarter data are nothing else but a mirage. The issue is not whether the economy is recovering but whether the recovery is a statistical artefact or signs of a sustained recovery.

Source: Mint December 04, 2017 19:18 UTC