Here is a critical take on the Indian economy by world’s most respected magazine The Economist. The magazine says India’s economy is overheating and it cannot sustain the frenetic growth it currently is experiencing. It says: “...things are so hot there is a big problem: India’s current pace of expansion may not be sustainable.”
The magazine says that the “economy is displaying alarming symptoms of overheating. This implies that demand is outpacing supply and hence the pace of growth is unsustainable”. One of the signs is that despite lower oil prices, wholesale-price inflation has risen to 6 per cent. The magazine adds: “Perhaps the only thing really growing faster in India than China is hype.”
In my opinion, there are certain areas like real estate where a bubble is seen, but it’s not time yet to write off India.