Image result for economy imagesIndia lost the fastest economy tag to china. In 4rth quarter that is from January to march 2019. India grew by the rate of 5.8%, where as China grew by the rate of 6.4%. If we were to talk about full year GDP India is still ahead of China. But there is a drop in that also. India in 2015 grew by 7.4% where as in this we are growing by 6.8% which is lowest of the 5 years. 

Now many companies will have little reluctance in investing in India because India has not shown stability in its growth. India seemed like a promising market that will show positive growth for many years but there is a dip in initial years only. During previous meeting of world economic forum, Modi ji in most of his speech said about India being the fastest growing economy, trying so that investors can come into India. But now this thing will also not be in the speeches.

Now let us discuss few of the reasons for this.
1. Because of the back to back big reforms like Demonetization and GST  India has not been able to come back to its Initial pace. Before this India was growing at the rate of 8.2% after we not have been able to touch 8 mark again. Many of the people like daily wage laborers, small shopkeepers were the most impacted because of this. There income decreased so their spending capacity on things, which led to the decrease in revenue.

2.  There has been a lack in domestic spending, as India ecomony not depend on exports as that of China’s. India depends mostly on domestic market for its growth. As per the big companies like Maruti, Unilever there has been a drop in purchasing power of the Indian households.

3. This point is in the relation with 2nd point. Lack of jobs, India’s unemployment rate is 6.2% which is highest for 45 years. Because of lack of jobs, people are not earning and that’s why they are not purchasing and there is a dip in purchasing of things like Car. If it continues it is said that India will find itself in “middle income trap” and could never be like China. India would only become like Brazil and South Africa.  

India has one solution to it that is revive the manufacturing sector of India. Because upsc and ssc won’t be able to give as many jobs.  If people gets job there income will increase and they will buy more.

Many of the companies are not investing in India because of the harsh laws of land acquisition and strict labour laws. India has to dilute few of its Laws.

NBFC stress also needed to be taken care of, because there is not enough liquidity in the market.  Banks don,t have enough money to give for infrastructure projects. RBI has to lower the rates of Interest which in turn will have an effect on infrastructure projects of India and people so that they can start things of their own.

These 5 years will be game changer for Indian economy, if proper steps are taken Indian economy will flourish if not In the years to come India will lost fastest growing economy tag on the basis of year also. 



Hi. I’m Designer of bdiase. I’m CEO/Founder of The very same. I’m I am fitness enthusiast and am fond of traveling new places, I also have good experience of skin care, and can guide you about this, currently preaparing for defence exams for for Indian forces.

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  1. Bhai i am fan of your blogs you explain every topic properly with all content....