Indian economy grows at a faster pace in Q2

Mumbai, Dec 24

Global uncertainty retreated further from its highly elevated levels. Major equity markets experienced volatile movements due to concerns about stretched market valuations. The Indian economy, supported by resilient domestic demand in Q2, grew at its fastest pace in the last six quarters, says a report by RBI.

High-frequency indicators for November suggest that overall economic activity has held up with demand conditions remaining robust. Headline CPI inflation edged up but continued to remain below the lower tolerance level. Financial conditions remained benign, and the flow of financial resources to the commercial sector remained robust. India’s current account deficit moderated in Q2 over the same period last year, supported by a lower merchandise trade deficit, robust services exports, and strong remittance receipts, it goes on.

Talking to Bizz Buzz, MV Hariharan, ex-treasury head, SBI, says, “The underlying theme is ‘Uncertainties’. There are new normals being observed and created.. daily.”

This is expected to increase. Politics and Expedient Alliances are dictating economics and trade. In my view, this is now irreversible. With the collapse of all pretensions at Globalization, it's completely protectionist and the First Mover Advantage that's triggering the rush for resources..of all kinds, he said.

Can India be an outlier and remain unaffected?

It'll be naive to think so.

Germany is the prime example here.

Incremental steps which are calibrated for their enduring impact is the only way forward.

Better to acknowledge and accept the realities.