Number Theory: State of the economy – The opportunities and challenges

With a GDP growth rate of 8.2% in 2023-24 India was the world’s fastest growing major economy by a distance. The fact that this growth has come largely on back of a fiscal consolidation – GVA growth is a full percentage point lower – even in an election year, makes it all the more important. If the exit poll predictions of Saturday hold true, the Narendra Modi government is set to return to power with an even bigger mandate. This would continue the sweet spot of macroeconomic and political stability in India. What does this mean for the Indian economy in the medium term beyond annual and quarterly GDP growth numbers? Here are four charts which describe this challenge.