India’s GDP growth masks economic challenges

Judging by its macroeconomic indicators, the Indian economy performed well during 2023. In January 2024, the country’s National Statistical Office estimated that the growth in India’s real GDP would be 7.3 per cent during the 2023–24 financial year — the highest among the major economies.

This estimate is higher than the IMF’s December 2023 projected growth of 6.3 per cent. Even if the IMF’s projections prove accurate, India’s GDP would still expand at least two percentage points more than China’s.

Substantially higher…