The critical economic situation in the Indian economy has increased with the consistent acknowledgment by the Policy making agencies of the country at this point. Indeed, even the most recent yearly report of the RBI for the financial year 2018-19 (or FY19) affirmed that the Indian economy has for sure hit an unpleasant time. The GDP development pace of the economy has slipped to 5 percent in the principal quarter of FY20, the most reduced in more than six years. This means that harder occasions are ahead for citizens of this nation.
The spurt in economic slowdown has affected people right from automobile domains to agro-marketing businesses, which has prompted the general acknowledgment of the downturn. This is the worst case of such a huge financial crisis for India since independence. This is majorly due to the wrong economic policies adopted by the Government, especially with the people at the helm of the affairs. The financial slow down is characterized by the three successive quarters of reduction in GDP of the nation, followed by large scale unemployment, down fall in the growth rate of eight core sectors of Index of Industrial Production (IIP).
Recession can be short-lived if corrective actions are taken immediately, failure of which can have a prolonged effect on the health of an economy. In order to overcome the economic slowdown, the government should revise GST for the automobile sector, open up FDI in contract manufacturing sector and necessitate the recapitalization of the banking sector with immediate effect. Together with these, the government should focus on revising the GST slab for the core manufacturing sector, support the micro, small and medium enterprises.
Dr. Santhosh N,
Assistant Professor,
Department of Mechanical and Automobile Engineering
CHRIST (Deemed to be University)
Engcyclopedia 