To revive economic growth, Nirmala Sitharaman should sidestep this trap

The key to boosting growth lies in boosting investments, not consumption

The rate of growth of industrial output in India has slowed down hugely. Along with it, so has overall GDP growth.

A look at the Indian experience since 1951 reveals a broad pattern in which a short growth phase of about five years is followed by a longer slump of about six years.

Between 1952 and 1964 growth was driven by public investment. Then the money ran out and, from 1965 to 1970, there was stagnation in both investment and consumption. It was called a ‘plan holiday’ to denote a virtual full stop to state-led investment. 

From 1972 to 1978