NEW DELHI (Feb 28): India’s economy is forecast to slow less than estimated as banks work to replace cash sucked out by Prime Minister Narendra Modi’s shock clampdown in November.
Key Points
Big Picture
The surprising resilience in growth masks job and revenue losses at small companies, which employ as much as 40% of the country’s workers and are the secret to India’s growth, according to some economists and lobby groups. Any slowdown therefore carries risks for policy makers, who lack space for fiscal stimulus and who this month signaled an end to monetary easing. The central bank said it expects a sharp rebound in growth after a slump.
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