Debunking the K-shaped recovery theory
New Indian ExpressRecovery in GDP itself shows that top 10% has recovered and doing well. These conclusions are somewhat covered by Dr. Raghuram Rajan in an interview dated December 2022 where he said : “Its not just about four or five industrialists, even the income of upper-middle class rose in the country….Extremely poor people get a lot of benefit from the government and the upper class was not affected by the pandemic, it was the lower-middle class who faced trouble to a larger extent.” Section 11: Outlook While there are views which suggest that we are in a full-blown crisis due to K-shaped recovery, the evidence for the same is weak. However, continued recovery in real estate sector and capex spending by Government will be able to keep this segment’s income growing. There would be some impact on real estate sector especially considering higher interest rates, the global growth slowdown, and the hiring freezes in IT sector for the next year or two. However, with the continued recovery in the Trade, Hotels and Transportation sector and if the Government programs like National Logistics Policy have the intended effects, this segment will also start growing.
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India's economy unlikely to recover soon despite growing job numbers
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