Nips 'n' tucks to fix cyclical slowdown

In our view, the country's structural fabric is intact and a mix of measures - partly from ongoing resolutions and partly guided by government action - can help arrest the current cyclical slowdown

Jigar Mistry

It’s become common practice nowadays to tom-tom the latest high frequency economic indicators as proof of the structural slowdown in India’s economy. According to naysayers, in a developing economy like India, there’s no room for auto or consumer discretionary goods’ sales to slump into negative territory. “India’s economy has a structural problem and the government must stimulate the economy” or so the rhetoric goes.  The Federal Reserve Bank distinguishes between structural and cyclical changes based on whether monetary and fiscal ...