Indian Economy:In Recent Times

The Indian Economy has faced a steady growth in recent times but the growth has been considerably slow. Now India is not the fastest growing economy which it used be. According to reports by the Indian Government, in the past financial year April 2018- March 2019 the Indian Economy registered a growth by 6.8%.And in the quarter between January 2019 - March 2019 it expanded by just 5.8%,falling behind China's economy for the first time in two years. This can be a considered as a serious threat for the developing nation.The newly appointed Finance Minister Nirmala Sitharaman has a lot of problems to deal with after proper analysis of the reasons of slow growth in the last quarter.

Agriculture sector is considered as the heart of the Indian Economy as more than 49% of the population is dependent on agricultural sector but the growth in agricultural sector has been stagnant.The prices of farm produces has fallen sharply.Incomes of the farmers were promised to be doubled but in reality the income levels of farmers has recorded a mere growth.The reason behind low income levels among the farmers is,actually majority of farmers try to sell their produce directly to the Government at MSPs as declared respectively by different State Governments but in reality there are a substantial amount of middlemen involved in the process and this results to distribution of profits of farmers among the unnecessary middlemen.The farmers of the country are highly disappointed with government policies and hence are not keen to increase the agricultural output.

One more reason behind the stagnant growth of the economy is the failure of creation of adequate jobs and hence India is facing the highest unemployment rates after Independence.Rather creating jobs the government has failed to save the shutdown of Jet Airways which is one of the major aviation company in the country.More than 10000 employees lost their job,posing a major threat for the economy.

The Overall demand rates in almost every sector of the economy has been quite low. The foreign investors are notinterested in investing the major reasons could be Infrastructure of the country.India still does not posses adequate Infrastructure,for instance majority of the states have a problem of power cuts specially in states of Uttar Pradesh and Bihar.Moreover the roads and overall infrastructure of the country has failed to attract the attention of the foreign investors.

The industry sector of the country has not contributed anything substantial for the economy.The reasons for slow growth rates in the industrial sector is the low demand rates in the economy.

Reserve Bank of India has taken considerable steps to increase the economic growth and take it to a double digit mark. Recently the repo rate has been revised by the Central Bank.Repo rate is the rate at which Central Bank lends money to the commercial banks.Repo rates have been cut down which directly implies that the Central Bank is trying to increase the money supply in the economy.This would lead to increase in demand which would directly affect and increase the country's growth.

To conclude we can say that the stagnant growth in the Indian economy in the recent times is posing major threats for the economy and the newly appointed Finance Minister Nirmala Sitharaman who is only the second lady after Indira Gandhi to be the finance minister has some serious challenges waiting ahead which would have to be conquered with utmost powers so that the Indian Economy can grow and expand.