Overview
- Saying price deflators are unusually low, Ramesh argues reported real GDP growth is being magnified.
- He contends the low deflators reflect weak consumer demand driven by stagnant incomes outside the top of the pyramid.
- He notes corporate profits are at record highs and debt at historic lows, yet companies are parking cash in financial markets rather than expanding capacity.
- He warns that “Hum Do Humaare Do-isation” and an atmosphere of “Fear, Deception and Intimidation” are discouraging private investment.
- He shares a business-daily analysis to support the claim that strong balance sheets are not translating into capex, positioning the critique ahead of the Feb. 1 Union Budget.