Indian Politics: 10 reasons Why India entered into an Economic Slowdown

The current scenario of the Indian economy is in the doldrums. While the FM accepts that India is somewhere in between economic deceleration, her hands are insufficient to bridge the gap between the economic slowdown and the economic well-being. In fact, this downshift is not an outcome of recent consequences and it is not going to let us in the near future. The government in the center can be termed as a rigid government and doesn't believe in adjustments.  

This government is supposed to have an awful understanding of economic well-being and people's welfare. Demonetization and GST have massively whacked the country in the recent past. The 1% decline assumption in the GDP seems true today with Moody's downturned the GDP growth to 4.9% for the fiscal year 2019-20. While all the economic indicators are degrading the economic appetite and prosperity, unemployment at an all-time high rate, sectoral growth halted, the government is busy with Kashmir, NRC, and CAB. 

This is also a fact that the PM and company are not going to give up on social restructuring which is negatively impacting the economic environment of India. This is an established fact whenever social thump takes place the opportunities shrink. The investors, the job creators, the moneybags all go uncertain and avoid new ventures. The entire engine of growth gets chastised. 

Pakistan's economy is live evidence of social and religious thumping. From its existence, Pakistan always wanted to have a hold over India and for this, it executed several social and religious arrangements just not only to destabilize India but also to wreck itself. The economy of Pakistan flushed out in between these practices. 

India and Indians must take account of such consequences and must not break out the social integrity which in return will boost up the economic atmosphere of the country.

Reform and social restructuring are very sluggish in nature. One can not fix 70 years of negligence in merely 5-7 years. A government must have a rationale plan before stepping ahead into the social configuration and economic reshuffle. 

Why Indian Economy is stranded:

👉Missing links between the Government and the People:

When it comes to see the real scenario, they become blind. They believe in the Pakoda welfare of Indians. Millions of millions of our youth are unemployed and those that are employed are in a sheer fear of falling in their jobs. The farmers are crying, students in a state of uncertainty, deprived and privileged burdened but the government is on the verge of constitutional change. 

👉Emphasis on untangling contentious Issues:

Personally, I believe that Kashmir issue should be tackled because of the enormous cross border terrorism in the valley. But, rather than focusing on normalizing the Kashmir situation, the GoV introduced NRC and CAB leaving the country in a hoax. There was ample time for the government to think for the right plan and action to consider citizenship status in India. 

👉 Rising Prices: 

People don't have money either or they are not willing to expend which is why the prices are at all times high today. Supply is adequate but demand has been slumping so far. The government has no discretion on it because hands are wrapped now. 

👉 Resolving the Past:

Since 1947, the Congress and the left parties focused only on politics just for the sake of power and position. They didn't concern public grievances and social integrity. They never refrain to energize caste clash, religious skirmish, unsocial group's activities for the power and control. This government has undertaken to eliminate the debris that the previous governments left over. But, that smartness is stemming economic indigestion and subsequent financial crisis. 

👉 Fuel Prices and the Indian Economy:

In comparison to our neighboring and developing countries fuel prices are much higher in India. For an illustration, 

Diesel Prices in US dollars as on 16th December 2019

👉 Inability to Discover new Avenues for the People: 

In extreme conditions, the government has failed to find a window for the youth. It limits itself to 'made in India' 'Mudra Loans' and loans for SMEs. Neither of these schemes has proved to be an antidote for the financial freedom of the Indians. In such a terrible situation, the government should focus on helping the youth by making them self-reliant.

👉 FDIs Inflow Vs. Requirement:

In August 2017, the FDI reached the all-time low ebb. The issue is not just going low or high. The real issue is what was needed vs. What has achieved? India is one of the world's fastest-growing economies with large number of middle-class consumers. There exist promising opportunities for FDIs to infuse more and more funds constantly. But, reports suggest that China has been outperforming India as far as FDI is concerned.

India 

China 

       India vs. China FDI inflow for last 5 years 

  

👉 Financial Mishaps and Indian Economy:

The message passed globally as India has not a safe banking mechanism. Although, the list is long enough three major banking scams PMC, Nirav Modi and Vijay Mallya have handpicked by global media promoting an awkward image of Indian financial system. The Indian banks already burdened with NPAs have lost their goodwill too. 

👉 Global competition and Indian Economy:

The very competitor China is far ahead as far as developmental infrastructure is concerned. The pay and perks are good both for entrepreneurs and the workforce. The ease of doing business and the chances of getting a job are excellent there. In 2018, World Bank pronounced a difference in ranking of 36 points among India and China. Against China's 3.8% unemployment rate, we have a 6.1%.

👉 Rapid changes and Indian Economy:

To the time, the BJP government holds the office, change isn't a rare phenomenon. A transition into financial policies, social integrity, and religious sentiments has been abundant during the current government ruling period. The supreme agencies like CBI, RBI, Planning Commission have similarly and sufficiently shaken up. The Supreme Court's judges' edition appeared publicly. These disruptions coupled with scams and the political dog fight have also created an environment of economic furor. 

Nevertheless, the time is very crucial and changing today, We, as Indians must think about our future as loyal citizens and stand united against the odds at every spot. Be it Hindu, Muslim, Sikh, and Christians, everyone likes peace and prosperity and for this everyone has to sacrifice. We are not made for the governments, instead; governments are made for us. We will not let the government whatever it is doing but we should also explore our contributions to the nation.