A+| A| A-
Heading towards a ‘W’-shaped Recovery?
A sustained economic recovery requires that the huge growth deficit in industry be reversed.
The first advance estimates of the national income for 2022–23 released by the National Statistics Office show that the gross domestic product (GDP) growth has slowed down by 1.7 percentage points to 7%. Optimists ignore this slowdown and claim that this is not only a commendable performance, given the global slowdown, but also notes that India remains one of the fastest-growing major economies. However, these arguments are deceptive as the annual figures hide more than they reveal.
This is because the 7% growth in 2022–23 is mainly on account of the 9.7% pickup in the first half of the year. It means that growth is expected to slow down by more than half to 4.5% in the second half of the year. This is a major setback because it shows that the so-called V-shaped recovery after the pandemic has lost steam rather too quickly and that the economy can now possibly even head towards a double-dip growth or W-shaped recovery.
Dear Reader,
Or
To gain instant access to this article (download).
(Readers in India)
(Readers outside India)
