With households accounting for close to 60 per cent of India’s GDP in the form of private consumption expenditure, this will mean that inflation will become entrenched in the Indian psyche. As inflation becomes more persistent and generalised as a result, businesses will stop investing because they will worry that demand for their products may get postponed at these elevated levels of prices.
Such a global economic order was inherently unsustainable, and unstable, from the word go. But the greatest good, and the highest virtue, as it were, of sustainable globalization is that, it does not permit, except in the very short term, “unearned” and “unshared” prosperity but delivers “sustainable prosperity” only if they are “earned” and “shared” prosperity!