Neutral impactEconomy
GFF 2026 | India’s GDP debate heats up as NITI Aayog's Lahiri says double deflation is feasible
CNBC-TV18 1 hr ago·9 Sept 2026, 11:54 am
NITI Aayog's Ashok Lahiri has sparked a fresh debate on India's economic trajectory by suggesting that the country could experience a 'double deflation' scenario in the near future. This economic term refers to a situation where both the general price level of goods and services, as well as the prices of specific commodities, decline simultaneously. Lahiri noted that this could happen if capacity utilisation crosses the 80% mark, a level often associated with strong industrial activity.
This development is significant for investors as it signals a potential shift in the investment climate. High capacity utilisation typically indicates that factories are operating at near-full capacity, which can lead to increased production and, eventually, higher inflationary pressures. However, the prospect of deflation suggests that supply may be outstripping demand in the short term, a dynamic that can complicate monetary policy decisions and impact corporate earnings.
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- Category: Economy.
- Assessed as a significant, market-relevant update.
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