Slowdown in India's Economy

All of us would like the economy to grow continuously at a high rate. But this never happens. An economy's growth rate has a wave-like behaviour - alternately increasing and decreasing. This is a fundamental feature of a capitalist economy. And the length/duration of the cycle is roughly a decade. So every decade, the growth rate goes down.

India converted its economy from socialism to capitalism in 1991. Since then, we have also been experiencing this pattern. In 2000, our economy slowed down. So our next slowdown was due around 2010. But the UPA government tried to avoid the slowdown - by artificially boosting the economy with excess spending. But you cannot avoid a slowdown that is due. At best, you can only delay it - and that too only by a few years. And that is exactly what happened - the slowdown eventually hit us in 2013.

So going by the 10-year cycle, our next slowdown was due around 2020. And that is exactly what is happening now. Economic cycle is one of the most fundamental concepts in economics. But our media and liberal economists seem to be blissfully ignorant of it.