Indian economy is just getting warmed up

No economy grows forever, but some economies are better positioned than others to withstand periodic onslaughts to its foundations.

The Indian economy, despite forecasts made by prophets of doom, is robust and the government has issued a statement of intent, through positive directives and actions, that no stone would be left unturned to boost the confidence of the markets, corporations and the people.

Global rating agency Standards & Poor (S&P) has now looked ahead in its projections to affirm a stable outlook for India, forecasting that GDP growth would recover over two-three years.

The slowdown, S&P affirmed was cyclical, also owing to negative global conditions, rather than structural. To back up this assessment is the country’s above average GDP growth, sound external profile and evolving monetary settings. Furthermore, India’s strong democratic organisations support policy stability and compromise.

This is a reality check for the eternal pessimists.

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