By all indications revival in 2020 is not possible
The year 2019 has played out on a mixed note. Politically, the general election outcome upheld the popular choice of a majority government. Economically, conditions deteriorated rapidly through the year. In fact, an undercurrent of concern about the economic situation prevailed throughout 2019. This surfaced upfront immediately after the May election and reached a flashpoint by the middle of the year. Business confidence and consumer sentiments plunged, gross domestic product growth fell sharply to 5 per cent in April-June; leading indicators continued to surprise with the intensity of their downslide thereafter too, and in July-September, growth slipped further down to 4.5 per cent. These developments pushed the government into reform-cum-stimulation mode and prompted the Reserve Bank of India to lower interest rates throughout 2019, pausing only this month. With these armours, all expect the economy to recover next year. Will it look up in 2020?
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