India’s Economy Recovers, Providing Relief to Policymakers
India's economy rebounded with a 6.2% growth rate in the fourth quarter, outpacing expectations and offering some respite to Prime Minister Narendra Modi's ambitious growth plans. The GDP figure was in line with the median forecast in a Bloomberg survey of economists and higher than a revised reading of 5.6% expansion in the previous quarter. However, concerns persist about the country's growth prospects for the next year, with exports and government spending expected to play a crucial role in sustaining momentum.
- The sudden recovery highlights the resilience of India's consumer base and the impact of stimulus measures on rural consumption, but also underscores the need for policymakers to address underlying structural issues driving growth.
- What will be the long-term implications of the US-China trade tensions on India's exports and economic growth, and how will Modi's government respond to these challenges?