GOVERNMENT OF INDIA HAS PLANNED TO ADDRESS THE ISSUE OF ECONOMIC SLOWDOWN
According to various newspaper reports dated 14th August 2019, recently there has been a sharp depression in the Indian economy owing to reduced investments and, reduced consumer demand in automobile and real estate sectors, etc as given below. As a result, the Gross Domestic Product (GDP) has reduced to 6.8 percent in 2018-19.
1- Automobile sector
The automobile sector in India is said to have been facing the worst crisis in 20 years. In the recent years, approximately 2.30 Lakhs people in India have reportedly lost jobs in this sector, 300 dealerships have shut down, and sales of cars, tractors, and two-wheelers have declined considerably.
2- Real Estate
The declining health of the real estate sector is a massive indicator of the falling Indian economy. According to various experts, the volume of unsold houses over the past one year has increased in the top cities of the countries. As a result, around 250 ancillary industries — bricks, cement, steel, furniture, electrical, paints etc – have been adversely affected.
3- Fast moving consumer goods
The fast-moving consumer goods (FMCG) companies have reported a decline in the April- June quarter 2019 in both rural and urban areas of the country. For instance, Hindustan Unilever has reportedly posted volume growth of 5.5 per cent in April-June quarter compared to 12 per cent last year, and Dabur has reportedly posted a growth of 6 per cent against 21 per cent last year.
Thus, various experts believe that the growth of the economy would rebound only if companies are able to adapt themselves to the current regime and also, if the Government works harder in the coming quarters to boost up the growth of the Indian economy.
The Indian Lawyer
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