Under the hood

On the surface, India's economy seems to be cruising along, but it is on the commonplace road to prosperity failure

The post-Covid macroeconomic fundamentals of the Indian economy are sound. Since financial year (FY) 2022, gross domestic product (GDP) growth has averaged 7.2 per cent.  Consumer price inflation has oscillated between 5 and 6 per cent. The current account deficit is extremely comfortable, averaging between 1 and 2 per cent of GDP. The general government fiscal deficit is also under control at around 9 per cent of GDP in FY23, down from 13 per cent in FY21, and is expected to fall further this fiscal year. Tax revenue targets, though modest, are being met comfortably. Gross capital