Need new round of reforms to benefit from earlier ones
The world has changed dramatically, but is that the reason for the growth to taper off?
Need new round of reforms to benefit from earlier ones
The world has changed dramatically, but is that the reason for the growth to taper off?
In the last week of December, there were reports of Foreign Portfolio Investor (FPI) inflows being down 99% from the previous year. Reasons ranged from high returns from the United States (US) market, a depreciating rupee, and a shift from public/secondary to private/primary markets, which could reverse as markets changed. Then came the news that the estimated Gross Domestic Product (GDP) growth for 2024-25 would be around 6.4%, below the Reserve Bank of India’s estimates.Among the explanations offered were muted private investment, weak consumption growth, and high interest rates. A narrative was forwarded that these are short-term challenges and that we should see an upturn within a few quarters. When such data comes out at the year-end, it gives one the latitude to pause, reflect, and explore if a deeper theme or a missing pattern is at play.
The world has changed dramatically, but is that the reason for the growth to taper,
