February 13, 2026
Policy and Media
In assessing India’s current economic landscape, it’s crucial to begin with some fundamental technical considerations regarding how we measure and interpret economic performance. The recent gross domestic product (GDP) growth figure of 5.4% in Q2FY25, compared to the previous quarter’s 6.7%, has garnered significant attention. However, this year-over-year comparison between quarters requires careful interpretation. When growth is decomposed, both momentum decline as well as base effects play a role, with the latter making a more substantial contribution.
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