The Indian Economy grew at just 7.2% in the first half of the financial year 2015-16, while it grew at 7.3% in the entire financial year of 2014-15. The economic growth remained flat in the 19 months of the Modi Government There are four key components which contribute to aggregate demand growth-the most visible symptom of economic health – private consumption, private investment, government investment (focusing on government expenditure) and exports. Unlike the boom years 2004-12 where the economy was driven by all four components of demand, the striking difference about this year is that the economy is driven only by private consumption and to an extent by government investment. The two other factors of ‘private investment’ and ‘exports’ have remained sluggish leading to a drag in growth. Private Consumption: Private consumption has been the bright spot in the economy. This has been emphasized in the‘Mid-Year Economic Analysis’ recently released by the Ministry of Finance...