I thank Prof. Rajas Parchure for inviting me to this Economic Conclave at the Gokhale Institute. The Conclave has brought together eminent scholars and policy practitioners to brainstorm on issues of contemporary relevance to the Indian economy. Such interchange of ideas is important not only in encouraging research but also in shaping the contours of policymaking.
Under these circumstances, it may take some time for overall production activity to stop declining. Overall, adjustments in economic activity, starting from the decline in exports, are expected to have a negative influence on domestic demand gradually and this in turn will possibly prolong the ongoing adjustments.