Slowdown only cyclical: Chief Economic Advisor

Chief Economic Advisor K Subramanian said, while addressing the FICCI young leaders summit on Monday, that the country has not lost its growth potential and the economy will bounce back. “My take is that this is a lot more on the cyclical side, because there has been no change in the demographics, there has been no change in the demand in the medium term and the ability of companies to supply,” he stated. “So the steps we are taking, be it the corporate tax rate cut, the code on wages and industrial relations, is trying to create a more favourable environment for investment, which is what we require for sustained growth,” he added.