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Economy affected by economic slowdown needs concrete and effective measures

Monday - November 4, 2019 11:38 am , Category : WTN SPECIAL
Dealing with the economic slowdown, a big challenge before Prime Minister Modi
Dealing with the economic slowdown, a big challenge before Prime Minister Modi

Economy figures show the mirror to the Modi Government

NOV 04 (WTN) - Statistics show that the global economic slowdown has severely affected India's economy. Statistics ranging from industrial production and unemployment to tax collection are showing that if the Modi Government does not take some concrete measures in time, the economic slowdown could give a big jolt to the Indian Economy. The impact of the economic slowdown is such that since the beginning of this financial year, the Indian economy has been continuously affected by it.

The first sign of economic slowdown was the continued decline in auto sales in the auto sector for several months. After the auto sector, the economic slowdown has gradually taken almost every sector under its control. It is not that only the Indian economy is affected by the economic slowdown. According to the International Monetary Fund, 90 percent of the world's economies, including India, are affected by the economic slowdown. But fast-growing economies like India and Brazil are having a greater impact of the economic slowdown.

The economic slowdown has had such an impact on the Indian economy that it has severely affected industrial production, manufacturing, trade, and employment. Concern for the Indian economy hit by the economic slowdown grew, even more, when the Center for Monitoring Indian Economy (CMIE) released the economic data for the month of October. The data clearly shows that the global economic slowdown has badly affected the Indian economy.

For your information, let us know that the figure for industrial production in the month of October has been the softest in the last two years. However, it is not that the Modi Government has not taken some measures to deal with the economic slowdown. The Modi Government has taken a number of measures to deal with the economic slowdown, among which the reduction in corporate tax is prominent. But all these measures taken by the Modi Government are proving to be inadequate and these measures have so far proved unsuccessful in strengthening the market.

According to the index of industrial production, i.e. IIP (Index of industrial production), a major decline in the production of major industries of the country has been recorded. For your information, let us know that in the index of industrial production, the wage of these industries is about 40 percent. The index of industrial production released for the month of October recorded a decline of 1.1 percent, the biggest decline in 7 years.

At the same time, there is a big reason for concern for the Modi Government that in October, the country's industrial production has reached the lowest level of two and a half years. This is why because companies have not received new orders, due to which there was a slowdown in factories. According to the report, PMI stood at 50.6 in the month of October, while it was 51.4 in the month of September. However, for your information, let us know that staying above 50 PMI is considered a good sign and it shows that development is happening. The PMI index of less than 50 indicates a decline in industrial production.

At the same time, employment has also been affected due to economic slowdown. According to the data, the unemployment rate rose to 8.5 percent in the month of October from 7.2 percent in the month of August. For your information, let us know that the unemployment rate for October is the highest since August 2016. However, economists argue that due to economic slowdown, people have lost jobs in other major sectors including the auto sector. According to the information, the unorganized sector in India has the highest unemployment rate.

Amid an economic slowdown, a major setback for the Modi Government shocked when the GST collection for the month of October was below Rs 1 lakh crores. According to the data released, the GST collection has fallen to 95,380 crores in the month of October, while in the previous year 2018, the GST collection in the month of October stood at Rs 1,00,710 crores. For your information, let us know that this is the third consecutive month that the GST collection has been less than one lakh crore rupees. According to the data, the tax collection growth in the first six months of this financial year has been at a rate of only 1.5 percent, the lowest since 2009-10.
 
It is clear that the ongoing statistics of the economy are showing the mirror to the Modi Government that the country's economy has suffered a major setback due to economic slowdown. Economists say that the government was already aware of the economic slowdown and the figures of the decline in the auto sector for the last 15 months were indicating that, but the economic slowdown will affect the Indian economy so much, it could not be imagined by the Modi Government.

Although the Modi Government also took several measures to revive the corporate sector from the economic slowdown, the economic data for the month of October shows that the Modi Government has taken measures to deal with the economic slowdown either late or then it is proved inadequate. It remains to be seen what concrete and consequential measures the Modi Government takes to deal with the economic slowdown so that the Indian economy affected by the economic slowdown can stabilize and thereafter once again pick up momentum.