India projected its economy would expand more than previously expected, maintaining its status as the world’s fastest-growing major nation.
The figures suggest the country is weathering trade tensions with the US, as well as regional security and political issues. Remarkably, the central bank has cut its inflation forecast, pointing to something of a Goldilocks period in which growth is not accompanied by significant price rises.
Still, experts voiced caution. “India has experienced apparent structural accelerations before, only for them to fade when global conditions turned or domestic imbalances resurfaced,” a former central bank chief warned in the Financial Times. “Has India entered a structurally higher growth phase? The most defensible answer is — provisionally.”
