An impressive stock market rally, a smart recovery by the rupee, the lowest trade deficit in four months, a slender improvement in industrial output, some hints of weakening consumer inflation: Is the Indian economy finally on the mend?

Much of the recent optimism is premature. It is quite likely that India will end the fiscal year with a lower current account deficit as well as more muted inflation, but a vigorous resurgence in economic growth is nowhere on the horizon. Read more

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