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Dayalbagh Educational Institute PPT Slow

This document is a research paper submitted for an M.Phil. degree in economics that studies India's economic slowdown. It includes sections on the literature review, objectives, methodology, current status of the slowdown in India, its impacts, and causes. It finds that the slowdown has increased unemployment, reduced incomes and asset prices, and hurt sectors like manufacturing. The paper suggests more government spending and policies to boost growth. It concludes that India faces both cyclical and structural challenges to recovery from the slowdown.

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ayushi mittal
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184 views

Dayalbagh Educational Institute PPT Slow

This document is a research paper submitted for an M.Phil. degree in economics that studies India's economic slowdown. It includes sections on the literature review, objectives, methodology, current status of the slowdown in India, its impacts, and causes. It finds that the slowdown has increased unemployment, reduced incomes and asset prices, and hurt sectors like manufacturing. The paper suggests more government spending and policies to boost growth. It concludes that India faces both cyclical and structural challenges to recovery from the slowdown.

Uploaded by

ayushi mittal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 15

DAYALBAGH EDUCATIONAL INSTITUTE

(DEEMED TO BE UNIVERSITY)

SLOWDOWN GLIDE INDIAN ECONOMY :A CRITICAL STUDY

A Research paper submitted for the partial fulfillment


Of the requirements for the award of the
Degree of M.PHIL. (Economics)

DEPARTMENT OF ECONOMICS,
FACULTY OF SOCIAL SCIENCE

SUBMITTED TO SUBMITTED BY
Prof. S. P.Srivastava Ayushi Mittal
CONTENT
• INTRODUCTION

• REVIEW OF LITETURE

• OBJECTIVE OF THE STUDY

• RESEARCH METHODOLOGY

• PRESENT STATUS OF SLOWDOWN IN INDIA

• IMPACT OF ECONOMIC SLOW DOWN IN INDIA

• CAUSES OF ECONOMIC SLOW DOWN

• SUGGESTIONS

• CONCLUSION

• REFRENCES
INTRODUCTION
What Is an Economic Slowdown?

An economic slowdown occurs when the rate of economic growth


slows in an economy. Countries usually measure economic growth in
terms of gross domestic product (GDP), which is the total value of
goods and services produced in an economy during a specific period
of time.

A situation in which GDP growth slows but does not decline. For
example, if GDP goes from 5% growth to 3% growth, an economy is
experiencing a slowdown. Most analysts do not consider
a slowdown to be a recession, but unemployment may rise and
productivity may decline. 
REVIEW OF LITERATURE
Lakshman Nandini (2008):―The financial turmoil affected the stock markets
even in India. The combination of a rapid sell off by financial institutions and the
prospect of economic slowdown have pulled down the stocks and commodities
market. Foreign institutional investors pulled out close to $ 11 billion from India,
dragging the capital market down with it.

Gartner Study (2009): ―Indian BPO providers have proved to be stiff


competition to western BPO providers, accounting for 5 percent of market
revenue generated among the top 150 providers in 2008. Gartner expects this
increase in revenue to be maintained, with the BPO market share of Indian
vendors expected to nearly double by 2010.

Murugesh Keshav (2011): ―With BPOs moving up the value chain to provide
such high-end services as business analytics and knowledge-based services
through a mix of re-engineering skills, technology-enabled platforms, new
operating models and increased depth of services, BPO exports are estimated to
grow 6 percent to $12.4 billion (over Rs. 57,000 crore)
CONT…..
Aurodeep Nandi (2011): India’s cosine curve, a Business Cycle approach
of analyzing growth. The findings were envisaged where the global
financial crisis fitted in the Indian business cycle. A business cycle and a
composite leading economic indicator index with the Index of Industrial
Production (IIP) were constructed in this research.

Guruswamy Mohan, Sharma Kamal, Mohanty Jeevan Prakash,


Korah Thomas (2015): In their paper, ―FDI in India’s Retail Sector:‖
More Bad than Good, find that retail in India is severely constrained by
limited availability of bank finance, dislocation of labor. The study
suggests suitable measures like need for setting up of national commission
to study the problems of the retail sector and to evolve policies that will
enable it to cope with FDI. The study concludes that the entry of FDI in
India’s retailing sector is inevitable. However, with the instruments of
public policy in its hands, the government can slow down the process.
OBJECTIVE OF THE STUDY

• To study the slow down impact of India.


• To identify the present status of India.
• To suggest the remedies of slowdown.
RESEARCH METHODOLOGY

This research is totally based on Secondary data.


Secondary data included collecting information about
various apps, the industry position, etc. from the various
portals from the internet, journals, magazines etc.
PRESENT STATUS OF SLOW DOWN IN
INDIA
Seventy-five percent of the Indian economy is in lockdown. State borders are
closed, labor movement is curtailed and schools and training courses are
suspended across the country. Major companies in India have temporarily
suspended or significantly reduced operations in a number of manufacturing
facilities. Nearly all two-wheeler and four-wheeler companies have put a stop
to production until further notice.
In India, the service sector accounts for 55% of GDP. It is estimated that the
loss to the tourism and hospitality industry will be $2.1 billion for March and
April alone.
All the airlines except Air India have grounded their domestic and
international flights, the loss of which is estimated to be $600 million. 
CONT….
The coronavirus (COVID-19) crisis has led to a spike in the country’s
unemployment rate to 27.11% for the week ended May 3, up from the under
7% level before the start of the pandemic in mid-March, the Centre for
Monitoring Indian Economy (CMIE) has said. The Mumbai-based think tank
said the rate of unemployment was the highest in the urban areas, which
constitute the most number of the red zones due to the coronavirus cases, at
29.22%, as against 26.69% for the rural areas.

The COVID-19 pandemic is expected to hit Indian economy with about


$320 billion in terms of daily gross domestic product (GDP) loss.
The micro, small and medium enterprises (MSME) sector, often called the
backbone of the Indian economy, has had to shut small-scale factories, and is
working with minimal workforce.

At the global level, India is among the 15 economies most impacted by the
corona
IMPACT OF ECONOMIC SLOWDOWN IN
INDIA
• Unemployment.
• Fall in income – shorter working week.
• Rise in poverty.
• Fall in asset prices (e.g. fall in house prices/stock
market)
• Increased inequality and an increase in relative
poverty.
• Higher government borrowing (less tax revenue)
• Permanently lost output.
• Firms go out of business
CAUSES OF ECONOMIC SLOW
DOWN

• The Effect of Demonetization


• Too Much Debt
• Rollout of GST
• Global Slowdown
• Problems in agriculture sector
• Low investment
• Stressed banking sector
SUGGESTIONS

• More government expenditure


• Let Indian rupee be weaker
• Lower lending rates
• Certainty in business required
• No need for excuses: acknowledge and spend in rural
areas
• World bank hopeful: slow down to wane soon
CONCLUSION
We can said that in present time the condition of our Indian economy is not
good, The disruption in industries is not cyclical or because of economic
slowdown. Automation is affecting jobs in both manufacturing and services,
which displacement is also affecting the consumption cycle. India’s current
economic slowdown reflects both cyclical and structural factors. A slowdown
in the investment cycle, combined with supply constraints and a subdued
external environment has caused growth to slow to below trend. With weak
global demand for exports, India’s continued economic expansion will have to
rely increasingly on domestic growth drivers. That deficit spending in a
demand depression situation (a) would not lead to inflation - because of high
unemployment and low industrial production - as is the case in India or (b)
crowd out private investment - which is depressed in spite of lowering of
interest rate and corporate tax cut - are something economists don't disagree
with and hence, needs no elaboration. The current slowdown is treated as a
cyclical one, rather than a structural one, by the Government of India.
CONT…
Whether India can avoid a large economic slump or not, the path back
to growth will depend on a range of drivers. It is reasonable to draw
three broad scenarios. 

First, V-shaped, which is the classic real economy shock recovery — a


displacement of output, but growth eventually rebounds. 

The second, U-shaped recovery — where the shock persists but some


initial growth is resumed.

The third is the scenario where significant structural damage is done


with some permanent damage to India’s labor market and capital
formation abilities.
REFRENCES

1. ET. (2019, April 27). About 200 US companies seeking to move manufacturing base from China to India:
USISPF. Retrieved from https://economictimes.indiatimes.com/news/economy/foreign-trade/about-200-
uscompanies-seeking-to-move-manufacturing-base-from-china-to-indiausispf/articleshow/69068781.cms

2. HT. (2019, August 23). In 20 points, all the steps Nirmala Sitharaman announced to boost economy.
Retrieved from Hindustan Times: https://www.hindustantimes.com/indianews/finance-minister-nirmala-
sitharaman-top-finance-ministry-officials-addressmedia/story-H7tZ936sWub78bHIQm4D2N.html

3. Whye, L. K. (2019, March 4). India tops Global Consumer Confidence Survey. Retrieved from The
Economic Times: https://retail.economictimes.indiatimes.com/news/industry/india-tops-globalconsumer-
confidence-survey/68254668

4. Dhasmana, I. (2019, August 24). Moody's cuts India's GDP growth to 6.2% for 2019 amid economic
slowdown. Retrieved from Business Standard: https://www.businessstandard.com/article/economy-
policy/moody-s-cuts-india-s-gdp-growth-to-6-2-for2019-amid-economic-slowdown-119082400027_1.html

5. https://www.google.com/

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