DesiPundit

India, meanwhile, has mostly been powered by individual initiative. Embedded in the Economist’s forecast for trend growth is a 30%-40% deceleration in total factor productivity - from a rate of 5%pa over the last 4 years, to about 3%-3.5% in the next five. Unlike the analysts at Goldman Sachs, they believe that the recent acceleration has been cyclical and not a structural up-shift. The Government of India is on the other end, believing that the recent acceleration can be sustained. Part of me is sympathetic to the Economist’s hand-wringing - no one wants our bloated government to get complacent. But it is disingenuous to extrapolate that a hard landing is imminent - because of this lack of confidence. (The Economist’s in-house data bank, the Economist Intelligence Unit, has made estimates of TFPG which are far more optimistic

Nanubhai responds to The Economist article which claims that a hard landing for the Indian economy is imminent.