With the direction of global headwinds remaining uncertain, growth in government spending budgeted to be lower this year compared to last year, and private investment virtually absent, the lowering GDP numbers should serve as a reality check. _____________________________. While the government has vigorously underlined its reform achievements of the last three years, such as the Goods and Services Tax that rolls out in July, a mission-mode reforms reboot is urgently needed. And that can only begin if the problem is suitably acknowledged by policymakers.

In fact, the only reason the 7.1% estimate has held up is because growth for the previous quarters was revised upwards.

While lower inflation and growth may soften the RBI’s outlook, there is little that monetary policy alone can do at this juncture to revive animal spirits.

Returning to the 8% growth mark is going to be a big challenge.

Private consumption grew at the slowest pace in five quarters, even as construction and manufacturing activities dipped sharply.

Yet, whichever way one looks at it, the note ban seems to have exacerbated the problem, particularly for India’s large informal economy that the poor depend on, as even the World Bank has now noted.

With the direction of global headwinds remaining uncertain, growth in

1.	With the direction of global headwinds remaining uncertain, growth in government spending budgeted to be lower this year compared to last year, and private investment virtually absent, the lowering GDP numbers should serve as a reality check. _____________________________. While the government has vigorously underlined its reform achievements of the last three years, such as the Goods and Services Tax that rolls out in July, a mission-mode reforms reboot is urgently needed. And that can only begin if the problem is suitably acknowledged by policymakers.
A.	While lower inflation and growth may soften the RBI’s outlook, there is little that monetary policy alone can do at this juncture to revive animal spirits.
B.	Returning to the 8% growth mark is going to be a big challenge.
C.	In fact, the only reason the 7.1% estimate has held up is because growth for the previous quarters was revised upwards.
D.	Private consumption grew at the slowest pace in five quarters, even as construction and manufacturing activities dipped sharply.
E.	Yet, whichever way one looks at it, the note ban seems to have exacerbated the problem, particularly for India’s large informal economy that the poor depend on, as even the World Bank has now noted.
Answer» C. In fact, the only reason the 7.1% estimate has held up is because growth for the previous quarters was revised upwards.

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