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Are high interest rates preventing India from replicating China’s double-digit growth?

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Synopsis
Reforms like GST rollout and digitalisation were estimated to add another 2% to the GDP. But that has not happened. Capacity utilisation levels are below 75%, while private consumption growth has been slowest. Experts feel lowering interest rates may help. Is India punching below its weight?

How soon is India poised to grow in double digits? In the 2014-15 Economic Survey, the then chief economic adviser Arvind Subramanian wrote, “Facts and fortune have aligned in India’s favour” to propel the country onto a double-digit medium-term growth trajectory. Subramanian argued that India was in a sweet spot, rare in the history of nations, wherein a historic political mandate coupled with stable external environment will lead to sustained