Go Back Research Article January, 2025

Stagflation in India: Is the Economy Growing or Just Inflating

Abstract

Abstract India's post-pandemic economic narrative presents a puzzling paradox: high inflation rates paired with stagnating economic growth. This condition, known as stagflation, is particularly concerning for a developing nation where employment generation and affordability are key to inclusive growth. This article explores the emerging signs of stagflation in India, driven by global supply shocks, food and fuel price volatility, weak consumer demand, and structural employment issues. Through analysis of macroeconomic indicators such as GDP growth, inflation rates (CPI/WPI), and unemployment figures, this paper evaluates whether the Indian economy is genuinely expanding or merely inflating. Policy recommendations are provided to manage this dual crisis through balanced fiscal monetary coordination and targeted structural reforms.

Keywords

Stagflation Indian Economy Inflation Unemployment GDP Growth RBI Policy Fiscal Measures Economic Slowdown Monetary Tightening
Document Preview
Download PDF
Details
Volume 10
Issue 7
Pages a105,a106
ISSN 2455-2631
Impact Metrics