The growth of the Indian economy has confirmed its sharp acceleration (+ 8.2%) from April to June, according to official figures. The South Asian giant’s GDP grew 8.2 percent year-over-year in the first quarter of its current fiscal year, which runs from April 1, 2018 to March 31, 2019.
There was a rebound in the Indian economy that had suffered from the demonetization that had been improvised by the Modi government in late 2016 , confirmed by experts. The strongest notes were taken out of circulation and this created a lot of difficulty, including social problems for small businesses. It had also weighed on growth. We are now out of this bad patch.
The April-June figure is even higher than the 7.6% forecast of a panel of economists surveyed by Bloomberg. In the previous quarter (January-March), India had recorded growth of 7.7%.
This sustained growth rate is vital for the government of the Hindu nationalist Narendra Modi. But the Indian economy remains vulnerable to rising oil prices and the depreciation of the rupee, which is currently at historic lows against the dollar.
It’s an economy that is asserting itself but still has weaknesses but many hopes. And we must ask ourselves the right questions, such as whether growth really ensures development in the full sense of the term, that is to say beyond the downward trend of the poverty rate.