Watch | A Conversation With Montek Singh Ahluwalia on the State of the Indian Economy

Name: Watch | A Conversation With Montek Singh Ahluwalia on the State of the Indian Economy - The Wire
Uploaded: 2026-08-26T13:36:17+05:30
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Description: Are we pulling the wool over our own eyes when we insist that we are the world’s fastest-growing major economy?

Are we pulling the wool over our own eyes when we insist that we are the world’s fastest-growing major economy?

Karan Thapar

Are we pulling the wool over our own eyes when we insist that we are the world’s fastest-growing major economy?

On Sunday (August 23), at The Quorum in Gurugram, Karan Thapar discussed the state of the Indian economy with the former Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia.

Is the economy in a “near-crisis” situation as former Chief Economic Advisor Arvind Subramanian recently said? The rupee is amongst the worst performing currencies in Asia. Foreign Direct Investment (FDI) last year was just $7.7 billion, compared to $28 billion three years ago. Unemployment is a worrying concern and private investment is lacklustre.

The government takes great pride in describing India as the world’s “fastest-growing major economy.” However, Surjit Bhalla, in a recent article in The Indian Express, pointed out that since 2014 this is not true. He says India’s rank in terms of GDP growth is ninth, and in terms of per capita GDP and per capita growth in US dollars is eighth and 16th respectively. So, are we pulling the wool over our own eyes when we insist that we are the world’s fastest-growing major economy?

The truth is, says Ahluwalia, that we are not even leaders in GDP growth terms in the global south, or even South Asia. In terms of US dollar growth, Bangladesh is first at 8.3%, Ethiopia is second at 7.2% and India is 16th at just 4.7%.

In the discussion, Ahluwalia analyses the situation facing private investment, unemployment and manufacturing. It also touches upon whether politicians understand the problem they are grappling with and whether they have the strength and insight to tackle it.

The discussion closes with Ahluwalia identifying what advice he would give to the government to revive private investment and, through that, create jobs. He also addresses the question about what the state of the economy would be in the next year and the year after if the government continues as it has been for the last few years.

This article went live on August twenty-sixth, two thousand twenty six, at thirty-six minutes past one in the afternoon.

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