Indian economy's new normal

A slower pace of contraction in Q2, or a possible break out in the current quarter, would not end the problems of the Indian economy

Most forecasters are revising their growth projection for the current financial year. The Reserve Bank of India in its latest monthly bulletin noted that the Indian economy can break out of contraction in the current quarter — one quarter sooner than its earlier forecast. The official data for the July-September quarter (Q2) will be released this week, which will give a clearer sense of the state of the economy. Corporate sector performance during the quarter surprised on the upside, and it is possible that gross domestic product (GDP) data would also be on similar lines.

However, a slower pace of contraction