Why are Indian growth rates so volatile?

This year GDP growth has fallen to 6.8 per cent, the lowest in five years

Since the global financial crisis (GFC), India’s GDP growth has become highly volatile. Periods of higher growth are disappointingly short. A sharp recovery following over-stimulus after the GFC collapsed in 2011 and in the over-reaction that followed macroeconomic policy became too tight. Double deficits and high inflation did require adjustment. But the focus shifted only to structural reforms, which were expected to make possible sustainable high growth. But the disappointing yo-yo pattern continues for eight years now, suggesting that structural reforms alone are inadequate — counter-cyclical macroeconomic policy also has to be enabled.

This year GDP growth has fallen to