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A little noticed data point in the latest macro-economic numbers is that private consumption has slipped below 2017-18 levels, when demonetisation and the disruptive introduction of GST had taken a toll. Taken together with large-scale unemployment and reverse migration caused by the nationwide lockdown, it is clear that the overall consumption story has not only stagnated for four years but likely declined at lower income levels. This shrinking demand will have its impact on economic performance too, and reversing this trend is what the government should be working on, says T N Ninan. Read it here
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