Economic slowdown likely to worsen: Ambit

Rural land transactions had come to a standstill at the start of the calendar year, as the cash-reliant rural economy was hit hard by demonetisation

The government’s inability to train and educate its people, automation-led job losses, and demonetisation-induced closure of informal sector firms could seriously hurt India’s economic prospects, according to Ambit Research.

The interplay of these and other factors could further accelerate the slowdown, it said in a report. 

“A combination of India’s long-standing shortcomings (especially its inability to train and educate its people), worldwide changes in the ability of machines to replace workers in factories, and PM Modi’s resets (especially his multi-faceted crackdown on black money) is creating serious pain for the Indian economy,” wrote Saurabh Mukherjea, chief executive officer of Ambit