Off late there have been too many articles on the growth potential of the Indian economy by Indian and foreign media. However, I did not find a single convincing summary that gave me a comprehensive overview, key underlying macroeconomic drivers, the opportunities and challenges that lie ahead of India. Journalist blabber on and on without providing too much substance in one single article. Hence, I decided to put a short summary of what I had gathered over the past few days of my reading. In this post, I have extracted the the salient points and categorized them in to current strengths and weaknesses. The source for this information are the latest RBI reports and news articles in reputed journals: BBC, The Hindu, and Economic Times. STRENGTHS: Political stability at the center has improved consumer and investor confidence. Because of strong govt. at the center, structural reforms have accelerated- liberalised FDI (foreign direct investment) in key sectors, improved cost of doing business, and cleaned up legacy tax and bankruptcy laws. Improved urban consumption has been a major driver behind the rise in GDP. Rising urbanizations and income levels have been responsible for 3- 3.5% of the 7.5% growth witnessed in 2015-2016.
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