The Worst Phase of Economic Slowdown is Over?

Different indicators are signalling that the worst phase of economic slowdown in Indian economy is possibly over. These indicators are either becoming stable or stronger. However, these are still very weak to give strong indications about reversal in trend. Now, it all depends on budget presented by the government on 1st Feb 2020. If the budget is able to instill the confidence in the psychology of economy, economy would be back on growth trajectory. 

The reason for this optimism is that the advance estimates suggest that Indian economy would grow at the rate of 5 percent during this fiscal year. Considering the distressed conditions and market imperfections across sectors, if this rate is achieved by Indian economy, it would be an optimistic position for the whole economy. However on the basis of the upward movements in these indicators, arriving at any conclusion would be too early. 

The kind of financial mess that have piled up over decades, growth rate of 5 percent would be a good number to start with. Also this is the right time for the government to take some strong decisions about economic reforms. Without some strong economic reforms, it would not be an easy task for the government to bring the economy back on growth trajectory.

No comments:

Post a Comment