New Delhi, Jan. 15 -- India's 'K-shaped' economy is now so entrenched that news headlines appear to be speaking about two very different countries. Consider two news items. In the first 11 months of last year, imports of luxury watches hit 250 million Swiss francs, up 28% from last year.

That article in Mint last week also mentioned a 40-year-old Delhi businessman who spent aninitial Rs.60 lakh on an obscure Swiss luxury brand timepiece and then customized it for a total cost of Rs.1.6 crore.

At the other end of the spectrum, pushing through price hikes for tea, coffee and edible oils has meant that fast-moving consumer product companies are projecting low single-digits growth in earnings per share.

In the middle, even relatively low-p...