India sneezes, will we catch the cold?

The Reserve Bank of India, Mumbai

India sneezes, will we catch the cold?

By Jyoti Rahman   for AlaloDulal.org

Just a year or so ago, the Indian economy was expected to be growing at a 8-9% pace, and people were talking about double digit growth into the 2020s.  Within a year, growth has slowed to 4.4%, without there being any major shock —no financial crisis, no balance of payments crisis, no major natural disaster, nor any particular political tension.  India just slowed, sharply.  It’s now expected to grow only at around 4-5% a year, at least in the near term.  Reflecting the slowdown, and the changed perception of India, the Indian rupee has taken a beating in recent weeks.

Continue reading