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Country's economy to improve from the coming financial year due to the efforts of Modi government

Saturday - February 29, 2020 11:29 am , Category : BUSINESS
The economic slowdown influence the negativity on the GDP growth rate
The economic slowdown influence the negativity on the GDP growth rate

The economic slowdown seems 'almost' over, soon India's growth rate to pick up

FEB 29 (WTN) - The global economic slowdown has given a big blow to the economies of most countries, including India. According to information from the International Monetary Fund, the economic slowdown has affected 90 percent of the world's economies in some way. But the global economic slowdown has had a profound impact on fast-growing economies such as India and Brazil. The economic slowdown has not only given a jolt to India and Brazil, but also the economy of America, the world's largest economy, and China, the second-largest economy. Not only this, but the impact of the economic slowdown has also been seen on the UNO also. For your information, let us know that due to the economic slowdown, the budget of the United Nations office in New York had to be cut to a large extent.

As far as India is concerned, the global economic slowdown has affected every sector of India's economy, the fifth-largest economy in the world. But the economic slowdown had the deepest and longest impact on the auto sector. The auto sector faced an economic slowdown for nearly 20 months. And that is why a historic decline in vehicle sales was recorded. However, many reasons were responsible for the economic slowdown. But the ongoing trade war between the US and China is considered the biggest reason for the economic slowdown. But after the recent trade deal held between the US and China, the effect of the economic slowdown seems to be gradually decreasing.

Now, the effect of the economic slowdown is diminishing. In such a situation, the Modi government hopes that soon the economy of the country will pick up again. In fact, to reduce the impact of the economic slowdown, the Modi government has taken very important steps, after which it is expected that the effect will be seen soon. According to economists, the economic slowdown is now nearing an end in India, and soon the Indian economy will see a boom. But the economists have the opinion that to achieve 10 percent growth rate, the Modi government will have to make more changes in the economic policies and openness in them.

It is expected that after the economic downturn, the growth rate of India can be more than 6 percent in FY 2020-21. At the same time, the growth rate in the subsequent financial years is likely to be 7 to 8 percent. Economists believe that the worst period of the economic slowdown has passed. And because of this, the growth rate that had to be affected has been done. But now that the phase of the economic slowdown is about to end, the growth rate will be seen in such a situation. In such a situation, one can see a better growth rate than expected in the last quarter of the current financial year.

For your information, let us know that since the year 2003, India has achieved an average growth rate of about 7 percent. In the first term (2014–19) of the Modi government, it was around 7.5 percent on average. But the economic slowdown significantly affected the Indian economy, and the growth rate in the current financial year (2019-20) is estimated to be 5 percent or less. The growth rate for the current financial year has been estimated separately by other financial institutions and rating agencies, including the World Bank, the International Monetary Fund, and the Reserve Bank of India. But after the measures taken by the Modi government to deal with the economic slowdown, it is expected that the current financial year growth rate will be at least 5 percent.

Although economists believe that the Modi government has made good efforts to deal with the economic slowdown, only the final figures of the current financial year growth rate will show how effective the measures taken by the Modi government have proved. Actually, the global economic slowdown did not affect the Indian economy much, but the main reason for the sluggishness had been India's financial markets. Owing to the problems in the financial markets, own accounts of the banks are impaired, as well as the balance sheet of large companies is also impaired. At the same time, NPAs of the banks have also created a big problem. However, it was only in 2013 that the huge NPAs of banks were detected. But both the Manmohan Singh and the Modi government's efforts to solve this problem of NPA have proved to be unsuccessful.

However, now it is being said that the economic slowdown is going to end. In such a situation, it is to be hoped that the growth rate of the Indian economy should once again growing rapidly. But due to Coronavirus infection in China, there has been a deep crisis in the economy of China. In such a situation, while China exports a large number of goods to many countries of the world, it can be said that the economic slowdown may take some more time to dissipate. But still, the Indian economy has saved itself out of the terrible phase of the economic slowdown due to the efforts of the Modi government. Now, when the economic slowdown is on the verge of ending, then it can be expected that the Indian economy will once again be the fastest growing economy in the world in the coming financial year.