The median expectation for 2022 growth was 7.2%, according to an Aug 22-26 Reuters poll, but economists said that the solid growth rate masks how rapidly the economy was expected to slow in coming months. "By supporting growth through investment, the government has only fired on one engine while forgetting about the impetus which domestic consumption provides. This is why India's growth is still below its pre-pandemic trend." The economy has not grown fast enough to accommodate some 12 million people joining the labour force each year. That follows three interest rate rises this year totalling 140 basis points, and would take the repo rate to 6.00% by end-1Q 2023.

Source: The Edge Markets August 29, 2022 04:59 UTC