Indian economy is under tremendous distress. There is slowdown in every sector from manufacturing to services to agriculture (Upadhyay, 2019a). Core sector is contracting (ET, 2019). The unemployment rate is historically at the highest at 6.1% in last four decades. Indian rupee is getting weaker. Export is falling. Fiscal deficit is expected to expand. There is already trade war going on in international trade. Prices of petroleum products are relatively increasing. Demands for normal goods are falling. There is slowdown all across spectrums but the (Veblen Goods) luxury goods (Mukherjee, 2019). This makes the whole picture really very peculiar for the Indian economy.
Thursday, October 31, 2019
Monday, October 21, 2019
Contrary to many, Indian economy is not in the grips of contraction but slowdown. However there are a few optimists who may have luxury to suggest it as cooling or correction in the economy. There are enough and strong indicators clearly indicating that there is slowdown in the economic activities (Upadhyay, 2019). For any economy the cost of slowdown is always very high and the highest for the people at the margins and medium, small and micro enterprises (MSME) and informal sector. The present tide of slowdown is hurting the most to the people at the margin as they have lost their sources of income.