Much of the debate in recent months has been focused on the sharp loss of economic momentum in India. The big question is whether the ongoing slowdown is structural or cyclical.
The usual thumb rule is that the policy response to a structural slowdown is through economic reforms that ease supply constraints. And a cyclical slowdown has to be tackled with measures to stimulate demand. Rathin Roy of the National Institute of Public Finance and Policy argues that India is currently facing a structural demand problem, which further complicates policy choices.
![Prof K Nageshwar: Economic Recession Deepens in August [HD] (Video)](https://secure.gravatar.com/avatar/ba9d209f7408d31c02bd9313ef807db249a6fcf24f993220eed41724683faf09?s=100&d=mm&r=g "Prof K Nageshwar: Economic Recession Deepens in August [HD] (Video)"){kind=avatar}
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![Prof K Nageshwar: Economic Recession Deepens in August [HD] (Video)](https://i0.wp.com/www.socialnews.xyz/wp-content/uploads/2019/09/04/maxresdefault-10.jpg?w=180&quality=80&zoom=1&ssl=1 "Prof K Nageshwar: Economic Recession Deepens in August [HD] (Video)")
Much of the debate in recent months has been focused on the sharp loss of economic momentum in India. The big question is whether the ongoing slowdown is structural or cyclical. The usual thumb rule is that the policy response to a structural slowdown is through economic reforms that ease supply constraints. And a cyclical slowdown has to be tackled with measures to stimulate demand. Rathin Roy of the National Institute of Public Finance and Policy argues that India is currently facing a structural demand problem, which further complicates policy choices.