It is a misnomer to call the current state of the economy a stagflation: Madan Sabnavis

There is a lot of speculation about the current state of the Indian economy, with some calling the current situation of rising inflation, slower growth and high unemployment a stagflation. However, Bank of Baroda chief economist Madan Sabnavis in private talks Business todayHe said that we are not in a state of stagnation at all and using such words is a wrong name.

“Stagflation means negative growth and high inflation for two consecutive quarters. We are nowhere in the region of negative GDP growth, which we had during the lockdown but not after,” Sabanvis said.

Stagflation is a situation where inflation is high, unemployment is high and growth is low. According to him, even if inflation rises to 6 percent, it is not something to be afraid of.

“People feared that the price of crude oil would go up to -1 140-150. Someone said 400 400 per barrel, they are left. Today, we have seen that the balance will be around $ 110. So I do not think that there is. There are going to be more ups and downs, ”he added.

Read more: Inflation being broad-based, RBI to raise repo 1% in FY23: report

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