Economic growth problem: It's time now for Modi-II to undo the damage

Aiming for unachievable growth rates would compound past errors. The economy has to lower its sights, and do some hard thinking about how to come out of the present hole, writes T N Ninan

There is a general sense that the economic growth problem came upon us suddenly in the last few months. In some ways, it did — for example, through the continuing fallout of the collapse 11 months ago of IL&FS. That was about the time when the decline in automobile sales began. Similarly, Jet’s collapse in April sent up air fares and applied the brakes on what until then was rapid growth in air traffic. In a sense, therefore, the burdens hanging heavy on current GDP numbers are stochastic: The result of random events in different market segments, and hence not