What is meant by the term ‘Green Shoots’?

Aug. 24, 2024

The green shoots of a recovery have started to appear in the first six months of this calendar year, with niche verticals starting to draw investor interest, according to India’s startup sector.

About Green Shoots:

  • "Green shoots" is a term used to describe signs of economic recovery or positive data during an economic downturn.
  • The term "green shoots" is a reference to plant growth and recovery, when plants start to show signs of health and life, and, therefore, has been employed as a metaphor for a recovering economy.
  • The term was first used by UK chancellor Norman Lamont to refer to economic growth during the economic downturn in the United Kingdom in 1991.
  • Particularly after a recession, green shoots are welcome as symbols of the fact that the economy is slowly treading the path upward.
  • While there is no consensus on what exactly constitutes green shoots, the improvement in industrial production figures, rise in car sales, developments in the infrastructure sector, including the steadying of prices of cement and steel, have been seen as green shoots.