Quality of growth matters: Higher growth will happen when its composition and spread improves, not merely the topline

Quality of growth matters: Higher growth will happen when its composition and spread improves, not merely the topline

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, […]

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.