According to Dr Sachchidanand Shukla, consumer sentiments are lagging the business sentiments in India. The Chief Economist at Mahindra & Mahindra thinks that this can become a problem for corporates who are already dealing with the supply side shock, the semiconductor, the chips, and the entire supply chain issue.
In addition, this comes at a time when we have lost nearly two years even when pre-pandemic levels were assumed to be achieved. We’ll get the third quarter GDP statistics today, and we’ll see how various areas of the economy have recovered to pre-pandemic levels, but we’re still below 10% of pre-pandemic levels.
If we don’t get into a much longer geopolitical tangle or an oil shock, India is on track for a 7%+ growth rate.