Slowdown Creeps in Indian Economy

Abstract

Since 2015, various lead indicators, including the business cycle and the financial cycle, have started pointing towards a possible slowdown in Indian economy but those signs were too weak and the whole economic environment was full with optimism. Though, today the signs of slowdown are strong and more visible. Many indicators like consumption (demand), private investment, number of new projects and GDP growth rate (6.8% in 2018-19) are slowing down. Different institutions like Moody’s and economists are cutting India’s projected GDP growth rate. However this downturn is expected to be a short term phenomenon.