Number Theory: Demand, welfare, growth — The Budget’s trilemma

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The National Statistical Office (NSO) released the first advance estimates for GDP for the current financial year on 7 January. When seen from a year-on-year perspective, India’s economy is expected to lose significant momentum in 2024-25. From 8.2% in 2023-24, GDP growth rate is expected to fall to 6.4% in 2024-25.

A flower market in Kolkata.(ANI)

What does this mean for the Indian economy? Here is a set of arguments which suggests that reading too much into the year-on-year fall in GDP growth rate might give a misleading picture of the Indian economy’s current problems, which, to be sure, are far from insignificant.

Demand, welfare, growth — The Budget’s trilemma

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