What has caused an economic crisis in India? Listen from experts
PM Narendra Modi’s dream is to build an economy of over five trillion by the end of the year 2025 but this economic crisis has become a big hurdle for Narendra Modi and his party. Industries from auto sales and textiles to the stock market and inner garments are facing a hard time in selling. Data on the website of finance ministry shows that almost half of the Indian companies are earning less than Rs. 1Cr. annually.
This recession had struck the Indian economy at the starting of 2019 and when compared to the last 5 years this year’s GDP is the lowest. i.e. 5.8%. Sales of the automobile are fallen to 31% in July and sales of hair products and biscuits are also collapsing.
Data also shows that big companies who are earning a good amount of profit are also not interested in investing in the market or in any tangible property, they are sitting on money. Big companies had slowed down their investments in the financial year of 2016-17. With the arrival of new policies, companies are not willing to bear losses and are investing in low-risk businesses forcing the economy to fall.
At the end of the first quarter of 2019, CMIE (Center for Monitoring Indian Economy) shows that investment in new businesses is the lowest in the last 15 years. Big companies are planning to invest in 43,400 Cr. In June 2019 which is 87% lesser than the previous year around the same time.
Yes, we all know that congress and Former PM Dr. Manmohan Singh left our economy in a lot of mess in the year 2014. If things were working fine at that time then BJP would have not won with a majority of votes. Narendra Modi has to remove the blocks and fix the problem we were facing, he did it to an extent but the current scenario is making it worse than ever.
Views of people on this economic crisis
Rajiv Kumar, Vice-chairman Niti Aayog said, No-one is trusting no-one, even in the private sector people are afraid of investing money in the market, everyone is sitting in cash. Extraordinary steps should be taken to solve this issue.
Moody, Rating Agency predicted that the growth forecast of India’s economy was 6.2% last Friday. They also quoted that “Not much external pressure is imposed. There are some factors behind the slow-moving of the Indian economy like sick hiring, suffering from rural areas financially and hard financing conditions, this has built up stress to the big corporation.
Dr. Manmohan Singh said that the government should accept first that an economic crash has struck the Indian economy, once they accepted that the solution will follow. He added that changing few things in GST (goods and services tax) policies will help the economy and speed up the growth of demand; fix a lack of credits and save the agriculture sector.