India's economy has been making headlines for its impressive growth numbers which defy global challenges. However, analysts say that these figures mask economic weaknesses.
Economists say the country is also dealing with problems such as a crumbling rural economy, weak infrastructure and a low-skills workforce.
India's gross domestic product grew at a faster-than-expected rate of 8.4 per cent in the quarter to the end of December, with an official prediction of 7.6 per cent growth in the current fiscal year, which runs until the end of March.
India's growth may appear to be a “bright spot in a gloomy world outlook … but this does not reflect the reality on the ground”, says Sharad Shukla, director at Mehta Equities, based in Mumbai.
He quotes examples including the slow growth in sales of fast-moving consumer goods in rural areas and weak sales of small cars as indicators that the headline numbers for the country's GDP growth do not necessarily tell the full story.
Sales of entry-level cars plummeted 75 per cent to 35,000 vehicles in the three months to the end of September compared to a year earlier, the Society of Indian Automobile Manufacturers said.
On Tuesday, former Indian central bank governor Raghuram Rajan warned that the country should not get sucked in by the “hype” around its strong economic growth.
This comes as India prepares for its general election in a matter of weeks, with boosting economic prosperity being central to Prime Minister Narendra Modi's campaign, as he is widely expected to win a third term.
Mr Rajan, however, told Bloomberg that improving education, skills, and creating jobs were the need of the hour for India.
Despite India's high GDP growth, official data shows that private consumption, which is a major driver of the economy was only up by 3.5 per cent in the last three months of the year.
Analysts say the GDP numbers appear to be misleading.
“On the surface, the robust GDP growth seems contradictory given the modest increase in private consumption and contrarian trends in government spending,” says Tanvi Kanchan, head of UAE business and strategy at Anand Rathi Shares and Stock Brokers.
“Such discrepancies in India’s economic data are not unprecedented and are often attributed to large downward revisions of past data that boost recent growth rates.”
While she argues that in general, India's economy is performing well, there are regions that are struggling.
“India’s economy, along with corporate earnings, has consistently outperformed expectations,” she says. “Robust investment activity signals business confidence, while resilience across industrial sectors, notably manufacturing and construction, and a surge in service activity” are all positive indicators, says Ms Kanchan.
However, “agriculture, coupled with low growth in private consumption signals potential vulnerabilities that definitely warrant attention."
The agriculture sector contracted by 0.8 per cent in the quarter to the end of December compared to a year earlier, India's official data reveals.
The farming industry is the country's largest employer and most of the population lives in rural areas – so if agriculture is not doing well, this has a knock-on effect on areas including consumer spending.
“India is significantly lagging behind in agricultural productivity,” says Mr Shukla.
The disconnection when it comes to India's growth figures and the reality is partly a result of the way the GDP data is calculated, including using India's wholesale price inflation index data, rather than retail inflation figures, he says.
Some economists say that India's latest GDP data is somewhat skewed because of a surge in the growth of net indirect taxes.
They say that the GVA (gross value added) figure for the quarter to December, which came in at 6.5 per cent and does not include those taxes, is perhaps a more accurate representation of the country's economic expansion.
The difference between India's GDP and GVA growth in the latest quarterly data “is difficult to fathom”, says Madhavi Arora, lead economist at Emkay Global Financial Services.
“It largely reflects higher growth in general government net indirect taxes, possibly with lower subsidies,” she says.
Neither of these numbers, however, gives an insight into issues including India's creaking infrastructure, which Mr Shukla says is holding the country back from achieving its economic potential.
“To attain the full economic potential India has to invest in infrastructure development,” says Mr Shukla.
“The logistic cost for the Indian exporter is significantly higher than the other competing exporting countries. Labour, judicial, and bureaucratic reforms are the need of the hour. The government has to also invest significant amounts of money in modernisation of the education system and improve the medical infrastructure.”
In an interview with Bloomberg Television last week, Morgan Stanley’s chief Asia economist Chetan Ahya said that he did not see India hitting the 8 to 10 per cent economic growth rates that China achieved, because of a lack of infrastructure and low-skilled workforce.
He says that India's long-term growth is likely to come in at around 6.5 per cent to 7 per cent a year.
Overall, financial institutions remain generally bullish on the outlook for India's economy – at least on paper.
They have been upgrading their economic growth forecasts following India's better-than-expected figures for the current year.
Ratings agency S&P on Tuesday lifted India's growth forecast for the financial year to the end of March 2025 by 40 basis points to 6.8 per cent.
Breaking this down by sector, analysts note that there will inevitably be variations in the performances of different industries.
“We are bullish on sectors such as automobiles, information technology, pharmaceuticals, non-banking financial companies, and cement, based on their growth potential, sectoral dynamics, and regulatory environment,” says Ms Kanchan.
These sectors will benefit from macroeconomic trends, technological advancements, and domestic demand patterns, she says.
“Conversely, a more cautious stance on capital goods, engineering, infrastructure, and realty sectors. These areas face headwinds from regulatory challenges, cyclical demand fluctuations, and investment cycles.”
But the bigger concern is addressing the underlying challenges that continue to plague India's economy despite the strong growth prints.
“Navigating these economic complexities demands a deeper analysis beyond surface-level data,” says Ms Kanchan.
“While this period of robust growth presents opportunities, strategic foresight is crucial to ensure sustainable development and equitable prosperity in the long term.”
COMPANY%20PROFILE%20
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Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Company%20profile
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SUZUME
%3Cp%3EDirector%3A%20Makoto%20Shinkai%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Nanoka%20Hara%2C%20Hokuto%20Matsumura%2C%20Eri%20Fukatsu%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
'Downton Abbey: A New Era'
Director: Simon Curtis
Cast: Hugh Bonneville, Elizabeth McGovern, Maggie Smith, Michelle Dockery, Laura Carmichael, Jim Carter and Phyllis Logan
Rating: 4/5
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4.0-litre%20flat%206-cylinder%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20PDK%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E500hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E450Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh530%2C300%20as%20tested%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
De De Pyaar De
Produced: Luv Films, YRF Films
Directed: Akiv Ali
Cast: Ajay Devgn, Tabu, Rakul Preet Singh, Jimmy Sheirgill, Jaaved Jaffrey
Rating: 3.5/5 stars
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
The specs: 2018 Mazda CX-5
Price, base / as tested: Dh89,000 / Dh130,000
Engine: 2.5-litre four-cylinder
Power: 188hp @ 6,000rpm
Torque: 251Nm @ 4,000rpm
Transmission: Six-speed automatic
Fuel consumption, combined: 7.1L / 100km
Remaining Fixtures
Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final
Yemen's Bahais and the charges they often face
The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.
The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran.
Today, some 2,000 Baha'is reside in Yemen, according to Insaf.
"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said.
Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer.
The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
