Ramping up government spending may work for the short term but not for the long haul

Five quarters of declining GDP have put economy watchers in a tizzy. While demonetisation and GST are obvious villains by proximity, a more dispassionate analysis will show that little has changed structurally.First, the data growth in GDP at an average 7 per cent in the last five years was powered largely by personal consumption, which contributes over 55 per cent. Gross fixed capital formation c...