Indian Economic Crisis may damage country Dream of $5 trillion Economy : Kunasi Veera

Yes ! I stand  with the above statement.

With an aim to acquire USD five trillion economy status, India has to consistently achieve a minimum of  9%+ growth rate for next five years. On the other hand economic indicators reflect that the GDP growth of India has gone down to almost five percent in the first quarter of financial year 2019-20. Many sectors that contribute to the Indian Economy’s growth path, like Automobile, Real estate, FMCG, Manufacturing,  Agriculture are lagging behind in achieving desired growth rate and jobs in these sectors are not only going down but are also trimmed.

Job cuts, hiring freeze, factory shutdown, and suspension of production are some of the headlines staring at us as the Gross Domestic Product (GDP) growth rate of the economy slipped to five percent for the first quarter of 2019-20 ,the lowest in over six years.

key Points

Auto sector is facing worst crisis in about 20 years

In real estate sector, number of unsold homes have increased

When government needs more money, tax collection has grown by just 1.4%

The economy Growth can explain in terms of Every single purchase by it begins a chain of purchase and sale. The kiranawallah goes to wholesale market to buy stuff for shop. The wholesale market sources its supplies from the farmers, who purchase seeds, fertilizers, tractors, diesel and employ laborers on their fields. All are paid in money. This is repeated for every single purchase by your neighbor.  ensures flow of money that defines growth of measurable GDP.

It fell below 6 per cent mark in January-March 2018-2019. At 5.8 per cent, the March quarter growth rate pushed India behind China after seven quarters. But that rivalry is the least of the worries for Indian economy. There are worrying signs showing that slowdown is deep.

This is the slowest growth rate of GDP since 2014-15. The previous low was 6.39 per cent in 2013-14 following which the Narendra Modi government came to power in 2014.

 The problem was, although there was no growth, these artificial numbers were also not good enough. They didn’t touch 10%. The real growth was of course [-2.5%] of the said growth. Which meant that when the real growth was say, 5%, it would be shown as a growth of 7.5%.

Let's talk with some facts and figures and what other prominent personalities say about the above issue.

No Investment, No Demand, will growth fall from heavens?

- Bajaj Chairman

Private sector going through challenging times.

- L&T Chairman

Economic Slowdown in Auto Industry has impacted Steel Industry.

- TATA Steel CEO

There is evidence of slowdown in economy.

- HDFC Chairman

My worry is slowdown will last longer than expected.

- Axis Bank CEO

India may be in the midst of structural slowdown.

- Managing Director of Kotak

As the economy looks to emerge out of the slowdown, with automobile companies like Maruti Suzuki and Ashok Leyland forced to cut down production due to lack of demand, the new-age economy has not really offered any hope.

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