DMPQ: Economic survey suggested that India’s growth decoupled with the world growth? What is this decoupling and what are the reasons for it?( Economic survey)

Decoupling means Decline in the growth rate of India when world was facing positive growth rate. The Reasons for this decoupling can be attributed to Domestic reasons and the long term effect of balance sheet syndrome.

 

Reasons are:

  • Demonetisation exercise lead to negative growth rate.
  • Problems in new Indirect tax reform GST.
  • Twin balance sheet problem
  • Rising oil prices is a source of concern and it will eat up our growth if its price goes on increasing.
  • Sharp falls in certain food prices that impacted agriculture income.

 

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