In the first half India rsquo s economy temporarily ldquo decoupled rdquo decelerating as the rest o...........

Economic Affairs Growth and Indicators

In the first half, India’s economy temporarily “decoupled,” decelerating as the rest of the world accelerated – even as it remained the second-best performer amongst major countries, with strong macroeconomic fundamentals. The reason lay in which of the following:

1. demonetization

2. GST implementation

3. high and rising real interest rates

4. TBS challenge

5. decreased food inflation

1,2,3 and 4

1,2 and 4

2,3,4 and 5

All of the above

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Explanation:

Macroeconomic developments this year have been marked by swings. In the first half, India’s economy temporarily “decoupled,” decelerating as the rest of the world accelerated – even as it remained the second-best performer amongst major countries, with strong macroeconomic fundamentals. The reason lay in the series of actions and developments that buffeted the economy: demonetization, teething difficulties in the new GST, high and rising real interest rates, an intensifying overhang from the TBS challenge, and sharp falls in certain food prices that impacted agricultural incomes.