The near term growth prospects and the challenges India has now posted an 8.9% growth in each of the first two quarters of the current fiscal year. Purely on the statistical estimates of potential growth, this may appear to be the case of growth surpassing the potential.
However, it is important to understand that the growth trajectory has been pushed high on a low base. With these favourable base effects waning away, it may in the short-run be difficult to step up growth without overheating the economy. The near term growth prospects remain very encouraging even if we see slight adjustment in growth numbers ahead arising from unfavourable base effects.