An autonomous research institute under the Ministry of Finance


Has India Emerged? Business Cycle Facts from a Transitioning Economy

Publication date

Jan, 2010


Report submitted to the Ministry of Finance, Government of India


Ila Patnaik, Radhika Pandey, Chetan Ghate


Tracking cyclical variation of the state of the economy, i.e., measuring and forecasting business cycle (boom and recession) is essential for implementing policies effectively in the incidence of negative shock. To understand the business cycle in the economy, it is essential to have a comprehensive knowledge of the macroeconomic stylised facts in the economy. This study presents a comprehensive set of stylised facts for business cycles in India during 1950 - 2009 and finds that the nature of the business cycle has changed dramatically after India’s liberalisation and reforms in 1991.

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