Skip to main content

Indian Economy’s 2020 Anticipations


Indian economy grew at the slowest pace in over six year at 4.5 per cent during the second quarter of the current fiscal while it remained at 5 per cent in the first quarter which ended in June. It’s a zenith of several months of downbeat figures, from plunging car sales to shrinking factory output and an export slump. The festival demand uplift has been short-lived and the vegetable prices have risen uncharacteristically high for the season. The Reserve Bank of India has already cut interest rates throughout 2019 pausing only this month.
The RBI cutting rates and banks lower lending rates may help credit growth. But ambiguity in the jobs market and growing wariness among borrowers, are key dampeners that can impede the growth. Three of the four growth engines—private consumption, private investment, and exports—have slowed down significantly. The public sector banks have become too risk averse. They are not in a position to fund any risky business at the moment. The slackening of investment lowers the level of infrastructure development. Weak global demand due to escalation in trade wars may further impact India’s exports and investment activities. Further, private consumption, especially in rural areas, has weakened in recent months. Consumers or households have increased their liabilities in the last two years in which income growth slowed.
Along with this, there are a few signs of hope, and optimistic contradictions due to production from monetary and fiscal policy support easing in 2019, lower business taxes, partially eased labor regulations, further counter-cyclical stimulus expected in the forthcoming budget, improved rabi crop and other sector-specific relief measures which may result in the acceleration of India's GDP growth.
All in all, with no hidden drawbacks and the aims to rectify it, we expect 2020 to be a significantly better year for the Indian economy.

Labels:

Comments

Post a Comment

Popular posts from this blog

Significance of the “Developed Country” Tag for India

By Xeena Mehta The officials of the United States Trade Representative (USTR) uphold a list of countries that categorises countries as “developing”, “developed”, and “least-developed”. Countries that are classified as “developing” have permissions to export certain goods to the U.S. without being hit by heavy legal tariffs that are bind to be imposed on goods from “developed” countries. The “developing country” tag was originated by U.S. Trade Act of 1974, to aid poor countries develop faster. World Trade Organization also acceded to grant trade benefits to countries that were classified as poor. If noticed we can see that about two-thirds of countries that are members of the WTO classify themselves as “developing” countries and avail fore deals. Any such classification of whether a country is “developing” or not is entirely objective. While the economic progress achieved by India and China have achieved over the last few decades is seen as a valid reason to get rid of their s...
Post a Comment
Read more

Changing Environment For Local Business In Sri Lanka; Government Initiates The Revolution

Local industries and businesses are the backbone of the economy of any country. Additionally, Sri Lankan Government defines a local company as one with a minimum ownership of 51% of a Sri Lankan. To help these companies grow, the Sri Lankan Finance Ministry has proclaimed a circular enlisting the priorities to the local companies. Moreover, this move from the government may bring some salient alterations in the condition of the local manufacturers. The government has also come with up steps that will augment the local industries across the different domains. These domains include IT sector, construction, etc. The circular, as issued by the government includes relevant documentation regarding sourcing of resources and products. Additionally, sources point towards the fact that the government is hoping to extend support to the domestic sector and help them grow. Besides, the major focus is on the three sectors- IT software and hardware, construction and furniture and allied products. Pos...
Post a Comment
Read more

SECOND WAVE OF VIRUS LEFT INDIA’S HOSPITALS IN TROUBLE AS SHOTS RUN LOW.

India is facing a health crisis because of the second wave of the virus which is hitting high records. Hospitals around the country are facing a huge shortage of care beds and intensive drugs. From the wealthiest state Maharashtra to the most populated state Utter Pradesh there has been a shortage of hospital care beds and immunization centers which results in turning away people as they are running out of vaccines.  Maharashtra’s health minister Rajesh Tope has announced a strict weekend lockdown in order to control the situation. Mumbai has currently used up all but 3% of its intensive care hospital beds. Mr. Rajesh Tope has warned the state that they have three days’ worth of shots in stock and vaccination centers across the state are being forced to close down. Chief minister Punjab said that the Punjab’s vaccine will last another five days, urging the government to increase the supply. New Delhi -the capital of the country is also facing a lot of troubles due to the virus. At ...
Post a Comment
Read more