Indian Economic Slowdown
FACTORS FOR SLOWDOWN OF INDIAN ECONOMY,SUGGESTIONS FOR ITS IMPROVEMENT
Economic growth of a nation is measured by the value of goods and services produced within a country which is also known as GDP growth.The GDP contributions of the various sectors of the economy are Services-57 % Agriculture -17% Industry-27%.The growth in services sector is led by the IT-ITES industry.Which contributes nearly 8% of the GDP.The total revenue of the IT-ITES sector is around 100 billion $.Nearly 70bilion dolars of this comes from exports.It is this engine that drived the growth of several industries such as electricity,telecommunication,automobile,electronics besides many others.Recently the growth in the indian GDP has declined due to many factors such as European economic crisis ,decline in investment,Drop in FDI ,High Inflation,Widening CAD,Slumping exports,High NPAs,non performing assets of banks,Infrastructure Woes, Lack of Fiscal Discipline,SMEs
Global Economic Slowdown: European countries which account for a significant market for IT and ITES are crippled by the collapse of the several major economic powers such as Italy,Portugal,Ireland,Greece.The countries have gone bankrupt and have obliged for bailout trading it with fiscal discipline European central bank has offered billions pf dollars to bailout these sick nations.Thebudgetary allocations in major projects and innovation have dropped which may be the reason why FDIs from these nations have dipped.
INFRASTRUCTURAL WOES : The union government is unable to provide the basic infrastructure facilities such as telecommunication,power,roads,highways,water .Lack of Fiscal prudence ,red tapism and bureaucracy has driven away the foreign investments.Procedural and approval delays also hamper the economic prosperity of the country.
HIGH INFLATION: T he Burgeoning prices of the raw materials and agricultural produce has been due to the supply bottlenecks The failure of monsoon also led to decline in the yield per
Economic growth of a nation is measured by the value of goods and services produced within a country which is also known as GDP growth.The GDP contributions of the various sectors of the economy are Services-57 % Agriculture -17% Industry-27%.The growth in services sector is led by the IT-ITES industry.Which contributes nearly 8% of the GDP.The total revenue of the IT-ITES sector is around 100 billion $.Nearly 70bilion dolars of this comes from exports.It is this engine that drived the growth of several industries such as electricity,telecommunication,automobile,electronics besides many others.Recently the growth in the indian GDP has declined due to many factors such as European economic crisis ,decline in investment,Drop in FDI ,High Inflation,Widening CAD,Slumping exports,High NPAs,non performing assets of banks,Infrastructure Woes, Lack of Fiscal Discipline,SMEs
Global Economic Slowdown: European countries which account for a significant market for IT and ITES are crippled by the collapse of the several major economic powers such as Italy,Portugal,Ireland,Greece.The countries have gone bankrupt and have obliged for bailout trading it with fiscal discipline European central bank has offered billions pf dollars to bailout these sick nations.Thebudgetary allocations in major projects and innovation have dropped which may be the reason why FDIs from these nations have dipped.
INFRASTRUCTURAL WOES : The union government is unable to provide the basic infrastructure facilities such as telecommunication,power,roads,highways,water .Lack of Fiscal prudence ,red tapism and bureaucracy has driven away the foreign investments.Procedural and approval delays also hamper the economic prosperity of the country.
HIGH INFLATION: T he Burgeoning prices of the raw materials and agricultural produce has been due to the supply bottlenecks The failure of monsoon also led to decline in the yield per