Economy is not out of the woods yet

India’s revised GDP data paint a far healthier picture of the economy over the past couple of years than had previously appeared the case. GDP growth for FY13/14 was revised up from 4.7% to 6.9%. In addition, the Statistics Office estimates that the economy will grow by around 7.5% this fiscal year, which would be faster than China. But the new series seems wildly inconsistent with numerous other business and consumer indicators that point to continued weakness in the economy. In all, although growth is likely to accelerate this year and next, there is still plenty of work to do before the economy is operating at potential aga