Why the slowdown is in the mind
An analysis of India’s GDP reveals that low consumer and business confidence is fuelling the slowdown
The psychology of the slowdown is clearly at work. Other than bank retail loans, the overall private consumption remains weak
MUMBAI : In a piece published in this newspaper about three months ago, I had looked at how 15 economic indicators were suggesting an economic slowdown, taking into account data from April to June 2019. Three months later, we now have data for July to September 2019. This new data suggests that the economic slowdown has only worsened. A major reason for this is that the psychology of the economic slowdown is now stronger than it was earlier.