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Managerial Economic

Submitted by-Anand shekhar mishra

E.No-19BSP0328
 Economic Slowdown

Cyclical Slowdown Structural Slowdown

Cyclical Slowdown
• A cyclical slowdown is a period of lean economic activity that occurs at
regular intervals.
• Slowdowns last over the short-to-medium term.
• based on the changes in the business cycle.
• Interim fiscal and monetary measures, temporary recapitalisation of
credit markets, and need-based regulatory changes are required to
revive the economy.

Structural Slowdown

• A structural slowdown is a more deep-rooted phenomenon that occurs

due to a one-off shift from an existing paradigm.
• The changes, which last over a long-term, are driven by disruptive
technologies, changing demographics, and/or change in consumer
behaviour.

• Source-https://www.google.com/amp/s/wap.business-
standard.com/article-amp/economy-policy/cyclical-or-structural-
decoding-the-nature-of-india-s-economic-slowdown-
119090300158_1.html
 Reasons for Slow Down
Too much Debt Rollout of GST Global Slowdown

project title project title project title

Retreat of Globalization Ride out the Storm

How Economy is Doing
 Y=C+I+G+(X-M)

Consumption The largest GDP component

Investment Business investment in equipment

Government The sum of government expenditures

Expenditure on final goods and services

Export-Import
Net Export
 Indicators of Slowdown
These industries begin to Fall

Real Estate Automobile Steel

Steps to revive the Economy
• Merges of banks

• Reducing Interest Rate

• Give auto sector incentives to invest and shift to electric vehicles

• Reduce the GST slab rates

• Change the credit culture in public sector banks

• Factor market reforms, including bringing the cost of land down

Conclusion
It is appropriate to conclude this overview of India’s economic performance and policies with a
summary assessment of prospects. The past record shows an economy which has gained in strength
and structural maturity in many dimensions. It has certainly emerged from the pattern of sluggish
growth evident up to the mid-seventies, to a much better performance subsequently, especially in the
most recent years. A growth rate of 5 percent is now definitely sustainable and could even be
bettered in future if the considerable unutilized potential built up form past investment in the economy
is effectively exploited. There is considerable scope for reaping such benefits both in agriculture and
in industry, with present levels of the rate of investment or modest improvements therein. The policy
initiatives being taken in the industrial sector will help to bring about this outcome.
Thank

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