The Growth-Inflation Dilemma: Who is the Real Culprit ?

Abstract

The global financial crisis affected virtually every economy in the world, and India was no exception. But India recovered from the crisis much sooner than even other emerging economies. In the crisis year of 2008/09, growth dropped to 3.9 per cent, but it recovered reasonably well thereafter. In fact, in the two years after the crisis, 2008/09 and 2009/10, growth averaged 9.0 per cent which compares favourably with the average growth of 9.5 per cent in the three years before the crisis. However in 2012/13, growth dropped to 4.7 per cent, a poor return for an economy with great expectations