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.