New Delhi, Aug. 18 -- That the Indian economy is caught in a slowdown is beyond doubt. GDP growth rate has declined for four consecutive quarters. Between March 2018 and March 2019, it has come down by 2.3 percentage points. Given the downward revision in projected growth rates by most institutions including the Reserve Bank of India (RBI), any immediate revival is unlikely.

What can boost growth in the Indian economy today?

The answer to this requires a clear understanding of two basic questions. Is the current slowdown structural or cyclical in nature? And, what exactly has led to it?

The structural versus cyclical distinction is extremely important because this has a direct bearing on the choice of policies to boost economic activity...