Is the Indian economy going gangbusters or losing steam? Well, both may be equally true, depending on which variable one is looking at. But before that, it must be highlighted that the growth numbers in both the first quarter and now the second have come in way higher than the consensus forecasts, instilling some humility in economists and forecasters.

Real GDP growth has clocked 8.2 per cent in the second quarter, following a print of 7.8 per cent in the first quarter. This number seems all the more heartening as it has come in the wake of the imposition of US tariffs and huge geopolitical uncertainties.

Sectorally, a sizeable jump of around 9 per cent in manufacturing and services explains the stellar performance. But this was aided by a low base, sub one per cent deflator, frontloading of export orders to avoid tariffs and stockpiling for the festive season and GST rate cuts. On the expenditure side, private consumption jumped by 90 bps as compared to the previous quarter, strongly supported by fiscal and monetary measures. Investments, on the other........

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