Examining the Decoupling Hypothesis for India

NIPFP Working Paper 61
[PDF]

Shruthi Jayaram, Ila Patnaik, Ajay Shah
June 2009

Abstract
This paper examines the decoupling hypothesis for India. We analyse business cycle synchronisation between India and a set of industrial economies, particularly the United States, over the period 1992 to 2008. The evidence suggests that the Indian business cycle exhibits increasing co-movement with business cycles in industrial economies over this period. Indian business cycle synchronisation is stronger with industrial countries as a whole as opposed to the co-movement found with the US.