Explaining the Indian economy in 2023 involves examining three main aspects: GDP growth, inflation stability, and unemployment reduction.

The year commenced amidst high inflation concerns, which had dominated 2022. Although fears remained about potentially enduring high prices, the focus turned towards maintaining India’s GDP growth. Internationally, anticipations of a global recession were prevalent as 2022 concluded.

India dealt with its unique economic challenges like inadequate private consumption expenditures, stagnant government expenditures, and persistent unemployment issues. For instance, the Centre for Monitoring Indian Economy (CMIE) showed fewer people employed in India at the end of 2022 than at the start of 2016.

However, the year ended remarkably well for India, with inflation consistently decreasing to within the RBI’s comfort zone (2% to 6%). Instead of decelerating, India’s GDP growth also exceeded general expectations.

Against all odds, India managed to decrease the unemployment rate, with official data from the Periodic Labour Force Survey (PLFS) indicating increased women workforce engagement. This combined with supportive political sentiment made a noteworthy macroeconomic hattrick.

Analyzing these achievements brings about two perspectives. In the light of global economy, 2023 seemed like the year India initiated its journey towards becoming a developed country. Granting that India’s higher inflation rate is anticipated in a rapidly growing economy, it still remained immune from severe consequences of historic inflation. Furthermore, the nation improved its unemployment rates.

Nevertheless, there are concerns upon examining each of the achievements. Despite representing notable growth, the tag of being the fifth-largest economy doesn’t exactly convey the economic reality of the average Indian. Private consumption still lags, reflecting poor growth of private consumption. Likewise, the private sector remained tepid towards fresh investments.

Employment data, though seemingly improved, revealed deteriorating job quality and stagnating wages since 2017. And while the government tries to address these worries, textured solutions can run the risk of overlooking systemic labor issues.

Though successfully attaining price stability, India still grappled with inflation remaining above the RBI target rate of 4% for four consecutive years. This led to complications such as eroding purchasing power and made some question the desirability of the inflation-targeting regime.

In sum, while 2023 certainly marked remarkable achievements for the Indian economy in terms of macroeconomic stability, a detailed inspection of data reveals much more complex, contentious undertones.