Economic slowdown offers an opportunity

Let us understand what is the meaning of slowdown. When economy of the country is growing but their growth rate is decreasing as compared to previous growth rate is called economic slowdown.

Indian economy is described as a economy which is tenth largest in world by nominal GDP and third largest in terms of purchasing power parity.

This economy was growing at a fast pace in recent past has been plagued by such a slowdown that our currency is on a free fall and it is not able to ascertain its lower limit.

Economy of a country depends on number of factors which are divided in three general categories like Primary, Secondary and tertiary.

Independence-era Indian economy till 1991 was based on a mixed economy which combines the features of capitalism and socialism resulting in interventionist policies and import substituting economy.

Reasons for current economic slowdown:

♦ The most important factor in the slowdown of Indian economy is the poor infrastructure, low growth in agriculture production and industrial activities.

♦ Poor implementation of GST & Demonetization is the first phase of economic slowdown.

♦ People were started to think about even buying a $5 biscuit packet which means consumer demand is decreasing.

♦ Economic slowdown majorly effected on automobile industry, if we analyze, we see this automobile Industry contributes 7 per cent of total GDP

♦ Rupee is weakening.

♦ World economic slow is also a reason.

The remedies to get out from the slowdown

♦ It is better to diversify and increase exports

♦ Country is rich in number of metallic and non-metallic minerals which has given a strong base for the rapid industrialization. India should tap these resources

♦ The experts and economists say that recovery from economic slowdown or recession situations will depend upon on how the government's are going to deal with it.

♦ Recession is also an opportunity, at the same time, it is also a big threat.

Shashidhar Vuppala,Hyderabad