Explanation:

• Stagflation is a portmanteau of stagnant growth and persistently high inflation. Stagflation is a condition where an economy experiences the worst of both worlds — the growth rate is largely stagnant (along with rising unemployment) and inflation is not only high but persistently so.
• Higher inflation would decrease the purchasing power, thus bringing down the overall demand.
• Private consumer demand is the biggest driver of growth in India. Such aggregate demand — the monetary sum of all the soaps, phones, cars, refrigerators, holidays etc. that we all spend on in our personal capacity — accounts for more than 55% of India’s total GDP.