a inflation situation in India, which was also

a GDP growth of 7% in 2016-17, 7.6% in
2017-18 and 7.8% in 2018-19.”
Let us turn our attention now to the inflation
situation in India, which was also put out by
Mr. Jaitley as “CPI inflation declined from
6.5% in July 2016 to 3.4% in December 2016
and is expected to remain within RBI’s
mandated range of 2% to 6%.”
It is found by the National Council of Applied
Economic Research (NCAER) that in the
Indian context, the inclination is towards nonfinancial
assets as opposed to the financial
assets. In addition, even in the non-financial
assets real estate dominates followed by
durable goods and gold/bullion. RBI provided
the data evidence of the steady rise in house
prices during the past four-and-a half years
and that house price inflation has now
stabilized after it peaked during 2012-13.
Moving to interest rates now. The RBI
Governor, Urijit Patel, recently cut the repo
rate by 25 basis points to a six-year low of
6.25%.
Having shed light on some facts and figures,
we are now in the position to answer the
central question raised by the article. The
answer to that question is a definite yes. The
Indian Economy is clearly moving towards the
so-called “Goldilocks Economy” period. All
the numbers are bent in favor of the Indian
Economy. Though the GDP growth rate as
suggested by the definition of the Goldilocks
economy is 2-3%, but in my view India is an
exception to the rule. Since it is one of the
fastest growing and emerging market
economy, we can take the gradual yet upward
increase in the India’s GDP growth rate to be
a signal of its forthcoming transition to the
ideal phase. Adding to that, inflation has been
controlled and is expected to fall further. As
far as the asset prices are concerned, they also
show an upward trend. This trend is here to
stay. Interest rates were recently cut and are
predicted to decrease further. Evidently, the
behaviour of asset prices and interest rates is
in conformation with the economic theory, i.e.,
asset prices and interest rates have an inverse
relationship. Adding to that according to the
economic survey 2016-17, RBI has shifted to
an accommodative policy stance. With the
stability and optimism on the political front of
our country and many initiatives lined up like
the Make in India initiative and more, India
surely is emerging as a hub for investors all
across the globe. However, there is still some
uncertainty about the world economy.
Nevertheless, if everything plays out well,
India can most certainly findĀ