Not India Alone, It’s The Global Economy That is Slowing Down 82 Comments 15,440 views (The article “Not India Alone, It’s The Global Economy That is Slowing Down” published in magazine Uday India in September 28, 2019 English edition)
When you look at the share market, the entire Asian market is down. Money is being lost almost everywhere are investors are pulling out of all emerging economies.
Congress party is eying its chances among voters by alleging that it is government policies that have created a slowdown despite knowing that US China trade war is to blame for this.
Nirmala Sitharaman may lose her position in the coming days if her latest moves are unable to boost Indian economy. Lets see what happens in state elections and if BJP is defeated then be ready for some reforms.
To be honest, we should not compare ourselves with others since even our trade deficit with other countries has risen and this means we are able to export less but are consuming more.
Look we are competing with other economies and cannot come at the first place each time. India may not be the fastest growing economy presently but the credentials are very strong.
Something that is beyond one’s understanding is why even good economists are saying that Indian economy is not in good condition when they themselves know that the entire world is facing a slowdown.
What about China and Germany? Are they not experiencing decline in factory output? Opposition in India just needs some issue to decredit Modi and his ministers.
There are two types of slowdown, one is cyclical and another is structural. This time it is cyclical for India as industry has become stagnant after years of good growth. Conditions will improve over time.
US fed has declared another rate cut and it is a sign that they are worrying about an impending slowdown. Donald Trump has been asking them to inject liquidity in market as he is fearing his re-election.
The finance ministry has been taking good decisions lately although the union budget was not that good. Reducing tax rates for domestic companies is a good move.
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