With technical recession over, is it all well for Indian economy? Not quite

India’s currency is strong, the stock market is surging, and long-term interest rates are under control. The technical recession that blighted the June and September quarters is probably already over. Prime Minister Narendra Modi has rolled out the red carpet for industries ranging from automobiles and solar panels to specialty steel. The iPhone supply chain is keen to set up assemblies.

So is it all looking up for India’s post-coronavirus economy? Hardly.

The trouble is with demand. Firms are protecting operating profit — or preventing losses — by pruning jobs and cutting pay. The rupee hasn’t suffered the double-digit declines seen