Current year economic crisis in India #part 1

INTRODUCTION

As we are aware of the current scenario, leaving aside China,the whole world is going through a financial crunch, and India is not an exception, our country is also going through great economic crisis.

Our government told us that the economic slowdown in India was due to the economic slowdown worldwide. But the IMF ( international monetary fund) has said that the world economic slowdown is the economic slowdown happening in India. So this proves that the pathetic condition of the economy and unemployment in our country today is due due to the failure of our government. The international monetary fund has also stated that the India's projected growth rate for the year 2019 has been lowered down to 4.8 percent.

Do you know what this means? The dream of 5 trillion dollars economy which our prime Minister has showed to we people that we will achieve this goal by 2024,with this growth rate we will not be able to reach that level by 2030. So the question arises that how we will be able to reach that level.I would like to bring to you the suggestions of top economists of the country to revive the economy of India.

DEMAND IN ECONOMY

Source

SO let me start with the views of Abhijeet Banarjee who has been recently rewarded with noble prize in the field of economics. According to him the biggest problem behind the economic crisis is because of the lack of demand in economy,as the demand has fallen drastically, people don't have money to buy things,which led to the downfall of demand in market to buy things. He believes that this scenario can be changed by putting more money in the hands of poor. According to him this can be done by uplifting the price of crops and fruits in the market as these commodities are usually grown by the poor farmers.It can also be done by uplifting the national rural developmental schemes like MGNREGA (Mahatma Gandhi national rural employment guarantee act),cash should be directly transfered to the bank accounts of poor. In his opinion the government should focus on demand and leave aside worries of fiscal deficit, and should simply focus on the demand. He also believes that the biggest priority of the government should be focus on human development. That means we should spend more in the fields of education and health care in order to develope our labour force. He says that the Indian labour force is comparatively of low quality with other countries like China and the reason behind this is our negligence towards education and Healthcare.

Let me conclude it here today, and in the next post I will be bringing the views and thoughts of some more economists about the economic crisis India which is a burning issue in this huge populated country of the world.