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Comment: Are strong governments bad for the Indian economy?

Some political analysts have held the view that India has an inverse relationship between political strength and GDP growth.

March 14, 2018 / 19:09 IST
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RN Bhaskar

Could India’s GDP growth rates continue to be subdued in the coming years?  The government denies this.  It sounds bullish. Its spokesmen state that the economy has bottomed out, and the only way to go is up.

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But not everyone is so sanguine. In fact, as pointed out in these columns just a couple of weeks ago, most economic indicators do suggest some pain ahead. Some economists say that these numbers could be a passing phase.

There are others who, like this author, believe that the GDP numbers may climb by a couple of percentage points.  But that could be more because of e-payments, because now merchant discounts also get added to GDP.  E-payments alone have the potential of pushing up India’s GDP by a couple of percentage points each year for the next 3-5 years.