Overview

• The demonetisation program and the recently-implemented GST legislation were disruptive factors. They, nevertheless, do not account for the slowdown in its entirety.
• The Indian economy enjoyed windfall gains through lower oil prices, the effect of which has largely been eroded.
• Looking ahead, the economy is expected to gain traction as the impact of disruptive factors fades away.
• A focus on supply-side reforms will likely yield better results than pursing aggressive policies to lift demand.

For further details, please see the attached document.

• India Growth Puzzle: October 2017 (PDF, 500kb)