Jairam Ramesh questions India’s growth narrative, flags weak demand

Key Highlights

• The price deflators are themselves very low and hence these rates get magnified,” he said, cautioning against overconfidence based on such figures.
• Ramesh argued that while low deflators may offer temporary cheer to the government, they are symptomatic of a more troubling reality.
• “Low price deflators are the result of low consumer demand on account of income levels which have stagnated outside the very top of the pyramid,” he said, pointing to widening inequalities in income and consumption.
• Highlighting the contrast between corporate balance sheets and broader economic health, the Congress general secretary noted that Corporate India is currently flush with cash.
• “Profits are at record highs and debt at record lows,” he observed.