Former Chief Economic Adviser Arvind Subramanian has said India the Indian economy is headed towards an “intensive care unit” and indicated that a “Great Slowdown” was imminent. The former chief economic adviser said the country was experiencing what he calls the “second wave” of Twin Balance Sheet (TBS) crisis, which will further lead to even bigger damage to the economy.
“Look at electricity generation growth, it’s falling off the bottom, and it’s never been like this ever. So this is the sense in which I would say this is not just any slowdown, this is the great slowdown that India is experiencing and we should look at it with all seriousness and the economy seems headed for the intensive care unit,” Arvind Subramanian said during a discussion on his draft working paper published in the Harvard University’s Centre for International Development said.
Subramanian has co-authored the paper with the former head of the International Monetary Fund’s India office, Josh Felman. In this paper, Subramanian and Felman have termed India’s current economic crisis in India as “TBS-2” crisis.