That is a massive ₹20 trillion erosion of output in a year, which the economy will have to claw back before it can boast of any real growth. For instance, manufacturing is picking up pace, but services are still contracting in a big way, reflected in the respective purchasing managers’ indices. Pranjul Bhandari, chief economist at HSBC, terms India a “two-speed" economy, where industries experience unevenly distributed rates of growth. What we need to really see is where the two speeds meet," said Bhandari in a telephonic interview. “We need deeper real sector reforms.

Source: Mint September 14, 2020 00:22 UTC