The Indian economy has slowed considerably since the first half of 2016. The demonetisation program and the recently-implemented GST legislation were disruptive factors. They, nevertheless, do not account for the slowdown in its entirety. The Indian economy enjoyed windfall gains through lower oil prices, the effect of which has largely been eroded. Looking ahead, the economy is expected to gain traction as the impact of disruptive factors fades away. A focus on supply-side reforms will likely yield better results than pursing aggressive policies to lift demand.
Read more in the October 2017 edition of India Growth Puzzle from NAB Group Economics.