Indian economy has been claimed with promising pride of 5 trillion US dollars, with an envious GDP, comparable and competent with US and China. Surprisingly predicted and cohesive factors have contributed to a real concern. The facts, indicators, reasons and solutions have to be clearly understood for sustainable and developmental remedies.
Facts:
In April-June quarter, Indian economy had a GDP of 5% which was rated as slowest in over 6 years. Economist and financial experts forecasted GDP to be 5.6-5.7%. The normal GDP target for Indian Economy was proposed to hit as high as 8%. The major drawback is believed to be the drastic fall in the manufacturing sector which contributed 0.6 against 12.1% in previous years. The second kick back was from the agriculture forestry and fishing, laying to 2% against 5.1% expected. Mining and Quarrying, construction, financial, real estate and professional services contributed 2.7%, 5.7% and 5.9% respectively.
This growth slowdown in Indian economy was influenced by several endogenous and exogenous factors, even though an over estimate and an unreal figure of 2.55% in GDP is a common conviction during this stage.
Indicators:
“The fall in Indian economy”, to be agreed or not, has clear indications and set back in the preceding quarters. The financial and economic analysis was unattended and less significantly discussed. The major indicators are :
- Weak investment growth.
- Sluggish demand in the manufacturing sectors.
- Poor growth in private consumption.
- Poor growth pattern in manufacturing and agriculture sector.
- Poor performance and weakened auto sales.
- Poor market sales in domestic passenger vehicles
- Digitalization without proper infrastructure and awareness.
The elections and related domestic issues took an upper hand in planning issues, strategizing and in pulling out solutions for the promising years of India’s development growth.
