Has Indian economy finally turned the corner?

GN Bureau | September 1, 2014



In financial terms, the Narendra Modi government has completed its first quarter. At 11 minutes past 11 am today (September 1), the Bombay Stock Exchange Sensex was up 200 points at 26,837, while the NSE Nifty was up 62 points at 8,016 – both new highs.

According to latest figures released by the central statistics office, under the ministry of statistics and programme implementation, the GDP growth surged to 5.7 percent in the April-June quarter this year – the fastest pace in nearly two and half years. According to a report in Economic Times, investment activity has gathered pace and reassured consumers have begun to spend again, indicating the worst slowdown in the last decade may finally be over.

In Tokyo, meanwhile, prime minister Narendra Modi told media persons, “I think we have crossed the difficult situation that the country was facing."

While a political debate is certain to ensue, with the Congress claiming the ‘revival’ is due to the Chidambaram pill against the BJP’s claims of brining in “achchhe din” within the first 100 days of the Modi government, the question is whether the economy is finally out of the woods.

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