Reportedly former Reserve Bank of india Governor Raghuram Rajan has expressed concern over India's fiscal deficit figures, stating that it is the likely reason behind the slowdown in Indian economy. Meanwhile he also criticized the government over its populist decision-making which failed to focus on economic growth. When addressing an audience during his OP Jindal lecture at Brown University, Rajan said the uncertainty surrounding the overall economic vision of government is one of the reasons behind India's slowing economy.
He said "India has slowed considerably from the go-go years before the financial crisis, but even from the 9% growth in the first quarter of 2016". Presently the country is facing a serious demand crunch coupled with a slump in macro numbers and it is worth noting that the country's growth slipped to a six year low of 5% in the April-June quarter and is not likely to improve much in the next quarter.
Moreover Rajan explained that the slide is related to the legacy problems which are yet to be resolved. Rajan said the key problem for india is that it has not been able to figure out "new sources of growth". Perhaps he went on to suggest that India's financial stress should be seen as a symptom rather than a sole cause.