Only supply-side responses can rescue the economy now

With the economy slowing down to a nine-year low two years before the next general elections, and inflationary pressure still unabated, the UPA government is in a predicament from which it is finding hard to get out. It needs to do something non-standard, as its usual responses won't help in this case. Measures like a fiscal stimulus or interest rate cuts are ruled out, given already bloated government spending and persistent pressure on prices.

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