On Saturday, 15 June, Prime Minister Narendra Modi declared: “The goal to make India a $5 trillion economy by 2024 is challenging, but achievable, with the concerted efforts of states.”
Prime Minister is making such statements when GDP growth dropped to 5 per cent for the first quarter of financial year 2019-20, which is the lowest in the past six years.
But why do we care about economic slowdown? How do these numbers on the headlines affect us?
What happens in economic slowdown is you don’t get appraisals, you don’t get hikes, difficulty in shifting from one job to another, difficult to pay and buy things, people entering in the labour force are facing problems in finding jobs and if this situation prolonged you might even lose your current job.
Economic slowdown impacts everyone, from your domestic helps to you.
We are facing economic slowdown in our economy, from falling GDP growth to 5 percent, foreign investors pulling out capital, people losing jobs, consumption rate declining eventually leading to deduction of sales,decline in the value of Indian currency (Rs. 71.98 against the dollar at present) several core sectors including auto, manufacturing, agriculture, FMGC, real estate and construction have slowed down significantly.
Varun Berry ,managing director of Britannia has said and I quote “Even for a Rs 5 product if the consumer is thinking twice before buying it, then there is some serious issue in the economy.”
While Indian economy is showing serious symptoms of economic slowdown, Indian government still refuses to admit it. Even after, frequently asked by the media, there is no clear response. The situation could become worse if policies are not introduced to improve the situation.
Next 15-20 days will be very crucial for our economy because we will see what is the path government wants to take forward so the economy bounces back.
Recently, Dr. Manmohan Singh, former Prime Minister of India who also led the Finance Ministry of India released a statement saying that Modi should set aside politics and fix the declining economic growth of India.