Economic Condition of India
Indian economy is a mixed economy and it directly refers to the importance of GDP growth .
What is GDP ?
Gross domestic product ( GDP ) basically measures the percentage of a nation's economic activity .
Things needed to calculate GDP
1 - Consumption of population
2 - Investment on companies
3 - Government spendings
4 - Net exports
Gross domestic product ( GDP ) basically measures the percentage of a nation's economic activity .
Things needed to calculate GDP
1 - Consumption of population
2 - Investment on companies
3 - Government spendings
4 - Net exports
History of GDP growth rate
July 2016 - 8.7% ( highest of this govt )
Jan 2017 - 7.4 % + 6.1%
July 2017 - 6%+ 6.8%
Jan 2018 - 7.7%+7.7%
July 2018 - 8%+7%
Jan 2019 - 6.6%+5.8%
July 2019 - 5% ( lowest till now )
Jan 2017 - 7.4 % + 6.1%
July 2017 - 6%+ 6.8%
Jan 2018 - 7.7%+7.7%
July 2018 - 8%+7%
Jan 2019 - 6.6%+5.8%
July 2019 - 5% ( lowest till now )
And some economists says that it's the worst condition since 2012's .
Reasons of this condition
*Since so many economists said that demonetization had effected our economy , commercial sectors very heavily . Even so many foreign inverters kept their investments low . Our ex PM and an economist Dr. Manmohan singh forecasted that the demonetization could decrease GDP by 2% and it actually happened .
** In recent times the trade war between America and China is effecting Indian economy heavily . Which depreciated Indian currency from 68 to 72 directly . Which have a direct impact on net export ( downwards ) and gets slowdown GDP rate .
*** As Indian currently is depreciating although prices of goods and products . As usual people are not consuming that amount of products . In the last quarter the privet consumption was less than 4% .
**** In last election the government kept their spending low so it effected the GDP rate .
*Since so many economists said that demonetization had effected our economy , commercial sectors very heavily . Even so many foreign inverters kept their investments low . Our ex PM and an economist Dr. Manmohan singh forecasted that the demonetization could decrease GDP by 2% and it actually happened .
** In recent times the trade war between America and China is effecting Indian economy heavily . Which depreciated Indian currency from 68 to 72 directly . Which have a direct impact on net export ( downwards ) and gets slowdown GDP rate .
*** As Indian currently is depreciating although prices of goods and products . As usual people are not consuming that amount of products . In the last quarter the privet consumption was less than 4% .
**** In last election the government kept their spending low so it effected the GDP rate .
Effects on share market
As it is getting worst situation in share market . And it effected on every industry including IT , automobile , banking , food and others . But pharmaceutical industry is some how surviving .
As it is getting worst situation in share market . And it effected on every industry including IT , automobile , banking , food and others . But pharmaceutical industry is some how surviving .
What government is planning ?
~ RBI is planning to transfer some dividends and surpluses to government
~ RBI is may aggressively call against the interest rate of bank loans and other hand merging banks could make a strong economy .
~ RBI is planning to transfer some dividends and surpluses to government
~ RBI is may aggressively call against the interest rate of bank loans and other hand merging banks could make a strong economy .
the global economy is hit by a recession in 2020 or 2021, European countries would be worst hit due to political uncertainty over Brexit.
ReplyDeleteBut considering India's increased global exposure and present economic status, strengthening the fences by striking a balance between growth and reserves would not be a bad idea.
Thanks bro 🙃
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