India recovering slowly from the effects of economic slowdown
Saturday - January 11, 2020 11:35 am ,
Category : WTN SPECIAL
Industrial production rate turned 'positive'
The country's growth rate to pick up once again in the upcoming financial year
JAN 11 (WTN) - The global economic slowdown has greatly affected a fast-growing economy like India. According to the IMF (International Monetary Fund), the global economic slowdown has negatively impacted nearly 90 per cent of the world's economies, including India. At the same time, the ongoing trade war between the US and China has also affected economies around the world. Trade war itself has had a tremendous impact on China as well and for the first time in the last 17 years, the industrial growth rate in China has come down to a 17-year lowest level.
As far as the Indian economy is concerned, the economic slowdown has had a profound impact on the Indian economy. The rate of economic growth in the first two quarters of the current financial year has been very low and that is why the GDP growth rate is expected to be around 5 per cent in this financial year, which is much lower than expected. Apart from the World Bank, International Monetary Fund, and the Reserve Bank of India, several rating agencies have already lowered India's growth forecast for the current fiscal year, and this is mainly due to low demand and production due to the economic slowdown.
It is clear that statistics are showing that the economic slowdown has had a very negative impact on the country's economy. But in the midst of all this, on the economic front, the Modi Government has got relief news. For your information, let us know that in November 2019, IIP (Index of Industrial Production) has become positive after three months. As per the data, IIP has increased from -3.80 per cent to 1.80 per cent in the month of November. Let us tell you that the IIP of November 2019 is 0.50 per cent higher than the IIP of November 2018.
There was a negative impact on India's IIP growth due to economic slowdown. For your information, let us know that the industrial production rate was -3.8 per cent in October last year, while it was -5.4 per cent in the month of September last year. Actually, the index of industrial production has a lot of importance in the economy of any country. The index of industrial production itself shows the pace at which industrial growth is happening in a country's economy.
But the economic slowdown has greatly affected the industrial development of India. According to data released by the NSO (National Statistical Office), the IIP growth during April to November of the current financial year was just 0.60 percent, whereas it was 5 per cent in the last financial year 2018-19. It is clear that due to the economic slowdown and due to low demand, industrial production has been affected significantly. Due to economic slowdown, many factories and mills had to stop production for a few days, or then reduce production.
According to experts, recovery in industrial production growth rate has come from increased production activities. According to the data, production growth has increased from -0.7 to 2.7 per cent as compared to the year 2018. However, the growth in the electricity field is still a cause of great concern. Actually, this indicates that the current growth is not sustainable, and it may be that the growth rate may decrease once again in the future.
How negative the economic slowdown has impacted the Indian economy is evident from the figures. But it is estimated that in the coming financial year 2020-21, the Indian economy will break out of the slowdown, and the GDP growth rate will once again be around 6 per cent. According to experts, from the month of March and April, the impact of the economic slowdown will gradually reduce, and for this reason, the rate of industrial production in India will start to pick up once again.
JAN 11 (WTN) - The global economic slowdown has greatly affected a fast-growing economy like India. According to the IMF (International Monetary Fund), the global economic slowdown has negatively impacted nearly 90 per cent of the world's economies, including India. At the same time, the ongoing trade war between the US and China has also affected economies around the world. Trade war itself has had a tremendous impact on China as well and for the first time in the last 17 years, the industrial growth rate in China has come down to a 17-year lowest level.
As far as the Indian economy is concerned, the economic slowdown has had a profound impact on the Indian economy. The rate of economic growth in the first two quarters of the current financial year has been very low and that is why the GDP growth rate is expected to be around 5 per cent in this financial year, which is much lower than expected. Apart from the World Bank, International Monetary Fund, and the Reserve Bank of India, several rating agencies have already lowered India's growth forecast for the current fiscal year, and this is mainly due to low demand and production due to the economic slowdown.
It is clear that statistics are showing that the economic slowdown has had a very negative impact on the country's economy. But in the midst of all this, on the economic front, the Modi Government has got relief news. For your information, let us know that in November 2019, IIP (Index of Industrial Production) has become positive after three months. As per the data, IIP has increased from -3.80 per cent to 1.80 per cent in the month of November. Let us tell you that the IIP of November 2019 is 0.50 per cent higher than the IIP of November 2018.
There was a negative impact on India's IIP growth due to economic slowdown. For your information, let us know that the industrial production rate was -3.8 per cent in October last year, while it was -5.4 per cent in the month of September last year. Actually, the index of industrial production has a lot of importance in the economy of any country. The index of industrial production itself shows the pace at which industrial growth is happening in a country's economy.
But the economic slowdown has greatly affected the industrial development of India. According to data released by the NSO (National Statistical Office), the IIP growth during April to November of the current financial year was just 0.60 percent, whereas it was 5 per cent in the last financial year 2018-19. It is clear that due to the economic slowdown and due to low demand, industrial production has been affected significantly. Due to economic slowdown, many factories and mills had to stop production for a few days, or then reduce production.
According to experts, recovery in industrial production growth rate has come from increased production activities. According to the data, production growth has increased from -0.7 to 2.7 per cent as compared to the year 2018. However, the growth in the electricity field is still a cause of great concern. Actually, this indicates that the current growth is not sustainable, and it may be that the growth rate may decrease once again in the future.
How negative the economic slowdown has impacted the Indian economy is evident from the figures. But it is estimated that in the coming financial year 2020-21, the Indian economy will break out of the slowdown, and the GDP growth rate will once again be around 6 per cent. According to experts, from the month of March and April, the impact of the economic slowdown will gradually reduce, and for this reason, the rate of industrial production in India will start to pick up once again.
