Nine charts that sketch the anatomy of the slowdown in India’s economic growth and look ahead
The Indian economy’s growth in the June quarter, 5.7%, has been worse than expected. Economists expect the current quarter to see much higher growth. But how significant is the slowdown? And how sharp will the recovery be? Here are nine charts that sketch the anatomy of the slowdown and look ahead:
Chart 1 shows the depth of the slowdown, with growth in both gross domestic product (GDP) and gross value-added (GVA) at constant prices steadily falling from the June 2016 quarter. The fact that growth started tapering before demonetisation indicates the economy was already weakening before the demonetisation shock hit it. The fall in growth in the June quarter is also on account of the disruption caused by the introduction of the goods and services tax (GST).
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