Last month, global investment strategist Ruchir Sharma set the dovecotes aflutter when he declared that for countries like India, “5% (GDP growth) is the new 7%, the appropriate aspirational standard.”
He based his growth pessimism on the emergence of four Ds – deglobalisation, depopulation (a shrinking global labour force), declining productivity, and a debt overhang as big as the one in 2008. Almost on cue, India’s GDP number for the first quarter of 2019-20 (April-June) fell with a thud to 5%.
Few Indian economists will agree with Sharma’s formulation, for if India has to accept 5% as the new aspirational benchmark, […]
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