Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC 2019)

I partly agree. Steady GDP growth and low inflation have improved macroeconomic stability, but they do not by themselves mean the economy is fully healthy. A strong external position, fiscal discipline and a sound banking system also matter.

• Why the view is valid: Real GDP growth remains strong, making India one of the fastest-growing major economies. Inflation has stayed within the RBI target band, protecting household purchasing power and investor confidence.
• Why caution is needed: Growth is still uneven. Private investment has not fully revived, and job creation is weaker than needed for a young workforce. Rural distress, climate risks and farm slowdown continue to affect demand.
• Broader strength: Lower fiscal deficit, healthy foreign exchange reserves, and better bank balance sheets add resilience. Public capital expenditure is also improving infrastructure and long-term productivity.

Thus, India is in a reasonably good macroeconomic position, but “good shape” should be judged by inclusive growth, employment and resilience, not GDP and inflation alone.