Also, demonetisation and GST were not the only two culprits of the slowdown in growth since it had begun much earlier. Production volumes have not expanded as commensurately as production value. This is not a positive sign for a developing economy like India, where demand for jobs is ever expanding. The only thing keeping the economy running was increased government spending, but even that has been stretched beyond its limits. Addressing these policy bottlenecks can bring exports to an upward growth path.All these factors, combined with the fact that private investment continues to remain weak, point to bleak prospects for the Indian economy.

Source: Economic Times December 05, 2017 05:37 UTC