GDP numbers a cause for worry
Hindustan TimesThat the Indian economy would lose some momentum as the pent-up demand from the pandemic was exhausted was a given. The September quarter headline GDP growth of 5.4% was more than a percentage point lower than what private and the Reserve Bank of India forecasts expected. The Indian economy’s tepid growth performance is a result of weak animal spirits triggering a vicious cycle of poor future demand outlook holding back current investment which in turn is weighing down on current demand. But there’s also talk in the street that RBI’s regulatory crackdown on unsecured non-bank lending and not higher bank rates have played a bigger role in slowing down consumption demand. India has done well to retain its growth momentum without comprising macroeconomic fundamentals unlike most major economies in the post-pandemic period.