Business Standard

Cyclical or structural? Decoding the nature of India's economic slowdown

A slowdown in consumption demand, decline in manufacturing, inability of the IBC to resolve cases in a time-bound manner and rising global trade tension is impacting India, analysts say

Cyclical or structural? Decoding the nature of India's economic slowdown
Web Exclusive Premium

Nikita Vashisht New Delhi
India’s real or inflation-adjusted gross domestic product (GDP) grew at 5 per cent in the June 2019 quarter of financial year 2019-20 (Q1FY20), the slowest growth in six years (25 quarters). In nominal terms, the growth stood at 7.99 per cent, lowest since December 2002.

With this, fears of the slowdown being a more structural one than a cyclical one have surfaced.

ALSO READ: Growth of 8 core sectors slows to 2.1% in July, recovers from 50-month low

What is a cyclical slowdown?

A cyclical slowdown is a period of lean economic activity that occurs at

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 03 2019 | 9:11 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com