How the Indian Economy is on Slow Down? | Solution - News Interns: Economic , International , Ranking, Pakistan News


Sunday, October 6, 2019

How the Indian Economy is on Slow Down? | Solution

How the Indian Economy is on Slow Down? | Solution

Why Indian Economy is on Slow Down

India is always been known for its traditional values and existence from past centuries. The country's history is an interesting subject to study where there is a rule from Marthas till Mughals, The role of Jhansi Ki Rani and the brave Tipu Sultan all are undeniable. The well-quoted words about the Indian economy are that in Mughal's era the economy of the subcontinent was 25% of the Global Economy. But with the changing of time and stakeholders these figures have gone down and down. After Bahadur Shah Zafar (Last Mughal King), the subcontinent was invaded by Britishers who at that time came there for the sake of trading "Salt and Spices". The unbeatable culture got attacked by the Tricking Britishers. 

But years back Indian Economy started its revival after Independence of 1947. Indian economy got its entry in Top 10 Economies with the 2nd biggest population of the World. India not only improved its position but also took a step ahead by becoming a Market of 1.2 Billion people. But now the Indian PrimeMinister Narendra Modi took a very stunt-full step to attain public attention. The RSS Agenda is taking India far more away from its multi-cultural history. People are getting fired from jobs, Strikes, Rapes and many many more social issues. But the mean here is just to stay focused on the Indian Economy. India being the world's emerging economy loses its high growth figures, as many international and national independent economists already told that in their views Modi is cheating them through spreading fake digits of growth but no-one paid any attention, for now, the whole scenario is clear where the maintenance get out of shape and India will face its 6 years lowest growth rate of 5 percent in the first quarter of FY20. Even the Indian RBI seconded the fact that indeed India hits the 6 years highest unemployment rate in its Annual Report FY19. In the report, Decreasing Consumer Demand, Followingly Low Manufacturing, and Non-Revenue making Entities are highlighted as the reasons behind Indian Economic Slowdown. The viewpoint is that more people are in the job markets and moreover Indian Govt imposed more GST to gain revenues which in the response increased the Taxes and in the response, people have less to save from their Disposable Incomes after consumption. Which makes the next economic problem to worry i.e Low Investments. Indian Economy observed low Public and Private Investments this year, due to which Innovation, Structural and Research investments deterred unwillingly. However many economists believe that India is going into the next Recession.

Being an economics student, we can suggest a solution to Economic Issues and Problems without going into details

Why Indian Economy is on Slow Down

  1. The problem is within Fiscal Policy. i.e. Tax Policy
  2. Govt should GST should be decreased.
  3. Govt should take part in encouraging growth.
  4. The interest rate should be increased to attain public attention towards savings/investments.
  5. They should also consider the policy of Publish more Currency Notes in RBI, i.e. This will increase the money supply in the economy and helps in curing upcoming deflation errors.

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