10 reasons responsible for slowing down the Indian
In this article we are going to discuss about why the Indian economy suffers from the deflection or why the Indian economy slowing down.
First of all we discuss about the term 'Deflation'.
Deflation .
The term deflation refers to the situation when the market is suffering from lack of money that means public does not have money ye to buy product that lead to slow growth rate of economy for slowdown the economy.
Deflation causes slowdown the economy lack of demand that reduce the price of the product and low prices cause low supply because they have positive relationship between supply and price so that cause reduction in both supply and price that reduce the manufacturing sector and reduce the growth of Indian economy.
10 reasons that cause slowing down the Indian economy
• Shadow banking stress next
• Weaker Global demand
• Structural factors
• Agriculture in Crisis
• Us China trade war
• Jobless growth
• Inadequate spending on social infrastructure
• Unsustainable development
• Liquidity crisis
• Only rely on Exports
1. Shadow banking - shadow banking" — a term the industry does not embrace — these institutions helped fuel the crisis by providing lending to underqualified borrowers and by financing some of the exotic investment instruments that collapsed when subprime mortgages fell apart.
2. Weaker global demand :- indian market are usually based on the export.demand for indian for Indian products in global countries are very less because India do less export of goods so there is a very big demand of Indian product in other countries.
3. Structure factors:- in India there is a very low quality of structure are there that does not provide good opportunities to the MNCs to establish in India.
4. Agriculture in crisis :- In india where agriculture is the most productive and most contributing sector in GDP (GROSS DOMESTIC PRODUCT) but now a days farmer are suffering from many type of problems like high loan,low transport facilities etc. Which leads to agriculture crisis in India.
5. U.S CHINA TRADE WAR :- due to this trade war both the countries want to import goods from india and invest in india but due to that DOMESTIC producers may suffer.
6. Jobless growth :- in past few year indian economy growth rate increases but can't able to create sufficient amount of job that leads jobless growth that cause slowdown economy after some time.
7. Inadequate investment on social infrastructure :- in countries like india there is very low amount of investment in infrastructure or social infrastructure like hospitals,roads,parks etc. That leads low growth rate in people's standards of living that cause slow down economy.
8. Unsustainable development :- the term unsustainable development means development in present without thinking about future generations. That leads to slow down the economic growth in future.
9. Liquidity crisis:- due to the recent demonisation that lead the market in shortage of case or liquidity crisis that cause slowdown the economy.
10. Only rely on exports :- countries like India don't fully rely on exports of good like china. They need to boost indian market also for increase growth rate of indina economy.
Way ahead for this situation
• Government need to inject more liquidity in the market by purchasing securities from the market.
• RBI (Reserve bank of india) bank need to adopt more light monetary policy to inject liquidity into the economy.
• Creating more jobs for the youth of india by providing then better skill development programmes add new start up supports.
• Reduce the repo rate of commercial bank so that they provide loans to the public at low rate.
_____________________________________________
So this is the some reasons and few suggestions that are the causes and solutions of economy growth slowdown respectively.
Suggest your idea in the comment box and share with your friends and help them to know the real reasons for that.
First of all we discuss about the term 'Deflation'.
Deflation .
The term deflation refers to the situation when the market is suffering from lack of money that means public does not have money ye to buy product that lead to slow growth rate of economy for slowdown the economy.
Deflation causes slowdown the economy lack of demand that reduce the price of the product and low prices cause low supply because they have positive relationship between supply and price so that cause reduction in both supply and price that reduce the manufacturing sector and reduce the growth of Indian economy.
10 reasons that cause slowing down the Indian economy
• Shadow banking stress next
• Weaker Global demand
• Structural factors
• Agriculture in Crisis
• Us China trade war
• Jobless growth
• Inadequate spending on social infrastructure
• Unsustainable development
• Liquidity crisis
• Only rely on Exports
1. Shadow banking - shadow banking" — a term the industry does not embrace — these institutions helped fuel the crisis by providing lending to underqualified borrowers and by financing some of the exotic investment instruments that collapsed when subprime mortgages fell apart.
2. Weaker global demand :- indian market are usually based on the export.demand for indian for Indian products in global countries are very less because India do less export of goods so there is a very big demand of Indian product in other countries.
3. Structure factors:- in India there is a very low quality of structure are there that does not provide good opportunities to the MNCs to establish in India.
4. Agriculture in crisis :- In india where agriculture is the most productive and most contributing sector in GDP (GROSS DOMESTIC PRODUCT) but now a days farmer are suffering from many type of problems like high loan,low transport facilities etc. Which leads to agriculture crisis in India.
5. U.S CHINA TRADE WAR :- due to this trade war both the countries want to import goods from india and invest in india but due to that DOMESTIC producers may suffer.
6. Jobless growth :- in past few year indian economy growth rate increases but can't able to create sufficient amount of job that leads jobless growth that cause slowdown economy after some time.
7. Inadequate investment on social infrastructure :- in countries like india there is very low amount of investment in infrastructure or social infrastructure like hospitals,roads,parks etc. That leads low growth rate in people's standards of living that cause slow down economy.
8. Unsustainable development :- the term unsustainable development means development in present without thinking about future generations. That leads to slow down the economic growth in future.
9. Liquidity crisis:- due to the recent demonisation that lead the market in shortage of case or liquidity crisis that cause slowdown the economy.
10. Only rely on exports :- countries like India don't fully rely on exports of good like china. They need to boost indian market also for increase growth rate of indina economy.
Way ahead for this situation
• Government need to inject more liquidity in the market by purchasing securities from the market.
• RBI (Reserve bank of india) bank need to adopt more light monetary policy to inject liquidity into the economy.
• Creating more jobs for the youth of india by providing then better skill development programmes add new start up supports.
• Reduce the repo rate of commercial bank so that they provide loans to the public at low rate.
_____________________________________________
So this is the some reasons and few suggestions that are the causes and solutions of economy growth slowdown respectively.
Suggest your idea in the comment box and share with your friends and help them to know the real reasons for that.
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