Besides the low base factor due to Covid-led hit earlier, what also led to the growth was private consumption or capital expenditure and increase in services on the supply side. Image: Punit Paranjpe / AFP
India accelerated to fast-paced growth in the June-ended quarter, but the economy may still be headed for a slugfest in the second half of the financial year as monsoon plays truant, creating higher food inflation, while government-led spending takes a backseat amid declining exports. What is concerning is if the world’s fastest-growing economy will show its resilience as the country enters election mode in 2024.