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Fixing the demand slump: Seven reasons for slowdown, and possible solutions

The govt might look for quick fixes under pressure to revive the economy, but sustainable economic growth will continue to be elusive without structural changes, writes T N Ninan

T N Ninan

In the midst of a demand slump the like of which the economy has not seen for some time, there will be many experts offering reasons and solutions. This is a modest contribution to the debate.   Indian consumers are up to their necks in debt (refer to this May 24 column). EMIs (equated monthly instalments on loans) have been taking an ever larger share of take-home pay because a steadily larger share of consumption has been fuelled by borrowed money. Making matters worse, many people are paying EMIs on loans taken for hundreds of thousands of houses or flats lying incomplete for ...