Cyclical or structural? Decoding the nature of India's economic slowdown

A slowdown in consumption demand, decline in manufacturing, inability of the IBC to resolve cases in a time-bound manner and rising global trade tension is impacting India, analysts say

India’s real or inflation-adjusted gross domestic product (GDP) grew at 5 per cent in the June 2019 quarter of financial year 2019-20 (Q1FY20), the slowest growth in six years (25 quarters). In nominal terms, the growth stood at 7.99 per cent, lowest since December 2002.

With this, fears of the slowdown being a more structural one than a cyclical one have surfaced.

What is a cyclical slowdown?

A cyclical slowdown is a period of lean economic activity that occurs at