Addressing the Great Slowdown

Here's a list of measures that will not help India overcome the slowdown

In a recent paper, we set out a strategy for addressing what we called India’s Great Slowdown. The strategy aims at solving the balance sheet crisis by improving participants’ incentives to resolve stressed assets. It also aims at revitalising the real estate and power sectors by creating two bad banks. And it calls for boosting confidence and trust, in part by improving data generation systems. Call these measures the “to-do list.” 

Here we want to focus on several “don’ts,” especially fiscal stimulus via individual income tax cuts and boosting goods and services (GST) revenues by increasing tax rates. These measures