The total demand has remained subdued mainly due to high interest rates and property prices.
The IS curve is a measure of the sensitivity between GDP and prevailing interest rates.
How is it that tomatoes recorded a price fall in official statistics when it remained unaffordable for the common person in June?
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According to financial information provider BluFin, this slowdown threatens the fragile economic recovery.
It has already cut the rate three times this year to loosen credit and boost slowing growth in Asia's third-largest economy.
GDP growth in November is the second-highest since January 2012 when it had expanded 5.7%.
Even as the Indian benchmarks, the BSE Sensex and Nifty 50, crumbled over three per cent today, experts are optimistic about the Indian economy and believe investors can still make 30 per cent plus returns in 2015
The muted CPI inflation print at 5% earlier this week, followed by a similar WPI number released Wednesday, seems to have spurred India's central bank into action, is how the economists are reading into Reserve Bank of India governor Raghuram Rajan's 25 basis point cut in repo rate.
