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India not fastest-growing economy, Montek Singh Ahluwalia says
Former Planning Commission deputy chairman Montek Singh Ahluwalia has said India is not the world’s fastest-growing major economy, contradicting a central claim repeatedly made by the government. In a conversation with Karan…
Former Planning Commission deputy chairman Montek Singh Ahluwalia has said India is not the world’s fastest-growing major economy, contradicting a central claim repeatedly made by the government. In a conversation with Karan Thapar, Ahluwalia said India ranks 16th in terms of US dollar GDP growth, far behind Bangladesh and Ethiopia. Former chief economic adviser Arvind Subramanian has described the economy as being in a 'near-crisis'.
Ahluwalia also noted that foreign direct investment fell to $7.7 billion last year from $28 billion three years ago. The rupee is among the worst-performing Asian currencies, unemployment remains worrying, and private investment is lacklustre. The discussion closed with Ahluwalia outlining advice for the government on reviving investment and creating jobs.
Indian Opinion Analysis
When a former Planning Commission deputy chairman publicly disputes a government's central economic boast, it signals the claim is no longer credible even among its own past officials. India’s official GDP growth figures have been the subject of technical debate since the 2014 revision of the base year and methodology, which critics say inflates nominal growth relative to peer economies. The more useful benchmark is per-capita income in dollar terms, which captures real purchasing power and is what investors and global agencies compare. The government's next Economic Survey, due before the Union Budget, will be watched for whether it acknowledges the slowdown or continues to cite the headline rate alone.
Source: m.thewire.in
This brief was synthesised by AI from the source linked above.
