This article is in continuation of previous article we have published which was written by C. Rangrajn ji, We recommend to please first read this article – Why Indian Economy Growth is Slow – 5.7% and How to Accelerate it Further and then continue with below article.
Understanding the SlowDown – The Hindu
- Writer talks about Four pillars which contribute to Growth –
- Government Investment
- Private Consumptions
- Private Investments
- Export Growth.
- In the recent time private consumption as well as govt investment has also slow down.
- Private investment stalled significantly and export declined despite the Asian Economies grew after 2008 crisis, export decreased due to high rupee value.
- Why Investment Declined :
- Return risk from the investment were not favorable.
- Cost of Land, Labour,finance has to be recovered however due to low inflation investors were not convinced.
- Land and Labour reforms were not hapened in the recent times.
- NPA, bad loan is another factor.
- Smaller companies were unable to raise the funds.
- Ease of doing business, environment, policy changes are other factors.
- Way Ahead,
Changes can be reversed by Government new policies and positive will of govt.