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Economic Downturn in India: Need for Clarity in Policymaking

Updated: Aug 21, 2021

Published in The Economic Times


Emerging market business cycles differ from business cycles in developed countries in one significant way that the trend growth rate itself can change. In India the trend growth rate has dipped below 6% for the first time since 2002. In this article I further point out that Source of slowdown is probably systemic uncertainty and not driven by a particular sector. Therefore, it requires sustained and consistent action from the government which is beyond standard prescription. 






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