THE HINDU Editorial Vocabulary - March 2, 2018 - Topic 1

Buoyant again: on India's GDP growth

The latest economic data from the Central Statistics Office reveal that India’s GDP expanded at a brisk 7.2% pace in the three months ended December, an acceleration from the 6.5% posted in the second quarter. On the face of it, the numbers are cause for cheer and optimism, with gross fixed capital formation, a key measure of investment demand, showing a healthy improvement. Sectoral gross value added (GVA) figures also reflect a broad-based pickup in activity from the preceding quarter. 

The only three laggards last quarter were mining; utility services (including electricity, gas, and water supply); and trade, hotels, transport and communication services. The contraction in mining is of particular concern. The October-December quarter in 2016 was, however, the period when the Centre implemented the widely disruptive demonetisation of high-value currency notes, and so one has to bear in mind the base effect on the latest third-quarter data. Also, the CSO’s second advance estimates of national income for the full financial year are a lot more sobering. Both GDP and GVA growth estimates for 2017-18 have been revised upwards from the first-cut projections made in early January — GDP growth to 6.6% from 6.5% earlier as a result of GVA expansion being lifted to 6.4% from January’s 6.1%. But the assumption for increase in net taxes has been pared, reflecting the struggle to ensure buoyancy in GST revenue collections.

A study of the full-year projections reveals the pressure points. The same sectoral GVA data that at a quarterly level appeared to give promise of a more enduring recovery show momentum in five of the eight sectors decelerating. Of particular concern are the farm sector, where growth is set to slow to 3% from 6.3% in the previous fiscal; and manufacturing where the pace is expected to ease to 5.1% from 7.9% in the revised estimate for 2016-17. The latest Index of Industrial Production numbers that show manufacturing in April-December still significantly lagging behind the previous nine-month period, as also the Nikkei India Manufacturing Purchasing Manager’s Index that shows growth in the sector slowed to a four-month low in February, add to concerns about manufacturing. With private final consumption expenditure, a crucial driver of economic momentum, still to gain traction over the full financial year, it is increased government spending that has undergirded the expansion. Here lies the rub. The leeway for more pump priming is restricted as fiscal deficit at the end of January has already exceeded 113% of the revised estimate for the full year. Any more profligacy by the government risks threatening price stability. With the banking sector beset by bad loans and increased scrutiny on lending in the wake of frauds, and exporters still to make the most of the revival in global trade demand, the economy is not yet out of the woods.

Vocabulary

Reveal: make previously unknown or secret information known to others.

Example: Brenda was forced to reveal Robbie's whereabouts

Synonyms: divulge, disclose, tell, let slip, let drop, give away, give out

Antonyms: bury, conceal, cover up, hide, hush, keep back

Acceleration: increase in the rate or speed of something.

Example: The acceleration of the industrialization process

Synonyms: hastening, precipitation, speeding up, quickening, stepping up

Antonyms: retardation, deceleration, slowing

Optimism: hopefulness and confidence about the future or the successful outcome of something.

Example: The talks had been amicable, and there were grounds for optimism

Synonyms: hopefulness, hope, confidence, buoyancy, cheer, cheerfulness

Antonyms: pessimism

Reflect: throw back heat, light, or sound without absorbing it.

Example: When the sun's rays hit the earth a lot of the heat is reflected back into space

Synonyms: send back, throw back, cast back

Contraction: the process of becoming smaller.

Example: The general contraction of the industry did further damage to morale

Synonyms: shrinking, shrinkage, decline, decrease, diminution, dwindling

Antonyms: enlargement, expansion

Sober: make or become sober after drinking alcohol.

Example: That coffee sobered him up

Synonyms: quit drinking, dry out, become sober

Antonyms: frivolous, sottish, colorful, orgiastic, hopped-up

Assumption: a thing that is accepted as true or as certain to happen, without proof.

Example: They made certain assumptions about the market

Synonyms: supposition, presumption, belief, expectation, conjecture

Antonyms: bashfulness, confusion, consternation, dismay

Buoyancy: the ability or tendency to float in water or air or some other fluid.

Example: My lungs then re-expand, my wetsuit buoyancy returns and I float to the surface

Synonyms: impertinence, airiness, archness, perkiness

Consumption: the using up of a resource.

Example: Industrialized countries should reduce their energy consumption

Synonyms: use, using up, utilization, expending, depletion, waste, squandering

Exceed: be greater in number or size than a quantity, number, or other measurable thing

Example: Production costs have exceeded $60,000

Synonyms: overstep, surpass, outstep

Antonyms: inferior, fail

Scrutiny: critical observation or examination.

Example: Every aspect of local government was placed under scrutiny

Synonyms: examination, inspection, survey, study, perusal, investigation