India, Dec. 1 -- India is in the grip of, what experts dub as, a rare period of goldilocks economy. This is a state where economic growth is strong, inflation is low. Contrast this with an overheated economy, i.e., high-growth high-inflation, stagflation (low-growth high-inflation), or a cooling-off effect (low-growth low-inflation). While this is an ideal state that any nation or policy-makers desire, the question is whether it is sustainable or momentary. At present, the signs are positive, as growth seems to be on an upward trend in the first two quarters of this fiscal year, and inflation is at an unbelievable low. Imagine that food inflation, the scourge of politicians, is negative.
While one needs to celebrate this period, there are ...