India’s GDP for FY 2007-08- much higher than forecasts

This is another surprise. Whenever you try and develop a view over economy, the numbers come and surprise you. So there was an emerging view that growth in Indian economy is moderating. Moreover, people felt we are having some stagflationary conditionswith rising inflation and falling growth. Though, I still do not know how can we really define stagflation. It needs some serious research. If we have stagflation, policymaking is really tough. I have a paper on the same here 

The recent CSO press releasesays we are still growing at 9% ! So, atleast now the situation is clearer of high inflation because of high growth rates. There isn’t any stagflation. Industrial growth rates have fallen but stellar performance by agriculture and continued robustness in Services, the overall growth rates are still quite good.