Economics and politics cannot be kept very far apart—a reality Neelkanth Mishra says helps explain the controversy surrounding India’s GDP growth numbers. “Economics and politics cannot be kept very far away,” Mishra said in an exclusive interview with Moneycontrol. “There are always political undercurrents to a lot of the commentary that happens.”
One strand of criticism has been that the strength suggested by the GDP data does not match how the economy feels, Mishra said.
Steel demand, cement demand and granite demand are vibrant, while monetary growth is accelerating, he said. “For me, it feels like a very happening and an exciting economy.”
The commentary may be gaining traction because stock markets have not moved much and real wage growth remains weak, he said.
The stock market has not done much for two-and-a-half years, while the economy still has slack. Even while growing at 7.8%, Mishra said India remains about 9% below where it is supposed to be.