SLOWDOWN OF INDIAN ECONOMY

ANALYSIS AND RESULTS

Submitted by: RESHMA CHACKO
TINTU NINAN
 INDIAN ECONOMY

•The economy of India is characterized as a developing market

economy. It is the world's fifth-largest economy by nominal
GDP and the third-largest by purchasing power parity (PPP).
• According to the IMF , on a per capita income basis, India
ranked 142nd by GDP (nominal) and 119th by GDP (PPP) per
capita in 2018. 
•From independence in 1947 until 1991, successive
governments promoted protectionist economic policies with
extensive state intervention and regulation ; the end of the Cold
War and an acute balance of payments crisis in 1991 led to the
adoption of a broad program of economic liberalization .
•Since the start of the 21st century, annual average GDP growth
has been 6% to 7%, and from 2014 to 2018, India was the
world's fastest growing major economy, surpassing China. 
•Historically, India was the largest economy in the world for
most of the two millennia from 1st until 19th century
•India's largest trading partners are China, USA, UAE, Saudi Arabia, Switzerland,
Germany, Hong Kong, Indonesia, South Korea, and Malaysia. 
•In 2018-19, the foreign direct investment (FDI) in India was $64.4 billion with
service sector, computer, and telecom industry remains leading sectors for FDI
inflows.
• India has free trade agreements with several nations, including ASEAN,  SAFTA,
Mercosur, South Korea, Japan and few others which are in effect or under
negotiating stage.
•The service sector makes up 55.6% of GDP and remains the fastest growing
sector, while the industrial sector and the agricultural sector employs majority of
the labor force
SLOW DOWN OF INDIAN ECONOMY
•The economic slowdown in India means hardship for Indians.
Scroll in has reported on dropping incomes as well as tight-
fisted spending ,even on essentials such as food.
•However, it is not only Indians who are suffering—the Indian
government is too. Even as the Indian government’s economic
mismanagement is responsible for much of the slowdown, it has
itself fallen victim to these blunders. The main casualty: tax
revenue.
•Given that taxation is a core part of the capabilities of any
government, this is a troubling sign for India. This is doubly
worrying for a poor country such as India, where state spending
is key
Add Skills to lifting people out of poverty
– 70%

Add Skills – 80%

Add Skills – 60%

Name Here Add Skills – 90%

Causes for the Present Slowdown in the Indian
Economy

 The effect of Demonetization

 Too much debt
 Roll out of GST
 Global slowdown
 Retreat of Globalization
 Ride out the storm
 How to come out of it?
 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

SEVERE SLOWDOWN: WHEN WILL THE INDIAN ECONOMY RECOVER AND HOW ?

 India’s gross domestic product (GDP) growth has

dropped to 4.5% in the July-September quarter of 2019-
20, a free fall from the government’s ambitious call for a
double-digit growth not so long ago. Propelling India into a
$5 tn economic behemoth by 2024-2025 also seems
implausible now.
The fall has been sudden although not entirely
unexpected. In the first quarter of 2016-17, India
registered a spectacular GDP growth of 9.4%. Today, it’s
struggling at a 26-quarter low. A severe slowdown  is here.
The question is, how long will it last?
How many more quarters will pass before India can
bounce back to a desired 8-10% trajectory? Will Finance
Minister Nirmala Sitharaman’s
.
slew of interventions —
from slashing corporate tax to doling out a real estate
package — pay off immediately? Is there a way to
accelerate recovery?

To measure policy uncertainty, they used data from the

Economic Policy Uncertainty indices of 18 countries over
24 years. In these indices, compiled by another group of
researchers, uncertainty is measured by capturing the
frequency of terms related to uncertainty and doubt that
appear in each country’s media outlets.
SLOW DOWN IN INTERNATIONAL TRADE
Last month, amid escalating trade tensions, the World
Trade Organization lowered its forecasts for global trade
growth in 2019 to 1.2% (down from its April prediction of
2.6%) which would make it the slowest expansion
in global trade since the financial crisis of 2008-09.
 Much of this slowdown can be attributed to heightened
policy uncertainty, suggests new research.
In a study published by the World Bank, Cristina
Constantinescu and others specifically find that a 1%
increase in uncertainty can decrease goods and services
trade growth by 0.02 percentage points.
The increased uncertainty since 2018, they argue, could
have reduced trade growth by a percentage point over last
year.
 Place Your Picture Here

• To measure policy uncertainty, they used data

from the Economic Policy Uncertainty indices of
18 countries over 24 years.

• In these indices, compiled by another group of

researchers, uncertainty is measured by
capturing the frequency of terms related to
uncertainty and doubt that appear in each
country’s media outlets.
.
 The Indian economy, which is already witnessing a slowdown, may be hit further with the world trade expected to drop further,
Infographic Style
according to the Reserve Bank of India (RBI).The apex bank, in its monetary policy report, said the forward looking indicators
suggest that world trade is likely to slow down further this year."The slowdown in global trade, which began in the later half of
2018, has continued in 2019, with contribution from EMEs slipping into contraction in 2019. Forward looking indicators suggest
that world trade is likely to slow down further in 2019," the Reserve Bank of India said.

In the US, real GDP growth (q-o-q, annualized) decelerated in Q2:2019 to 2 per cent, after rebounding in Q1, on slumping exports
and weak business fixed investment. The RBI further said the Euro area GDP growth slowed down in Q2:2019 as its major
constituent economies lost steam amidst lingering uncertainties around Brexit and trade tensions.

The German economy contracted in Q2 with a struggling auto industry amidst falling exports; it entered Q3 on a weak note as the
manufacturing PMI in September remained in contraction zone, marking the ninth consecutive month of decline in factory activity.
GDP growth in Italy stagnated in Q2 as contraction in industry and agriculture activities was offset by an uptick in the services
sector, though its high level of debt and ongoing political uncertainty are downside risks.
•The Japanese economy grew at a slower pace in Q2 than in the preceding
quarter as escalating US-China trade tensions and slackening global
demand prompted a sharp downward revision in business spending.

Real GDP in the UK contracted in Q2 on the back of declining manufacturing

activity due to planned early shutdowns of car plants in April following Brexit
uncertainty. Risks from a potential hard Brexit deal and evolving global
trading conditions cloud the near-term outlook.

The Chinese economy decelerated in Q2 (y-o-y) to its weakest pace in

nearly 27 years, weighed down by the adverse impact of the prolonged and
unresolved trade dispute with the US, and subdued global demand.

Among other BRICS economies, the Russian economy is struggling to

regain momentum after undergoing a sharp deceleration in Q1.
AWESOME WORLD
Place Your Picture Here And Send To Back

SLIDE TRADE
FURTHER
LOSING ITS
MOMENTUM

We Create Quality Professional

PPT Presentation

.
 Counter measures taken by the
government

This has led to a rash of downward revisions in .

1 India's GDP expansion has slowed to a six-year
low of five per cent for the June quarter

2
expectations, including from the RBI which now
expects GDP growth to come down to 6.1 per cent
in FY20

.
Hinting at other measures like steps to improve
exports, easing credit, making more money
3
4 The government has taken a slew of measures,
including a massive cut in corporate taxes to

5
available by early repayments to vendors and front- revive economic growth, even at the cost of
loading of banks recapitalization, Sitharaman said sacrificing revenues.
the government has been working on sector-
specific measures
6
 EFFORTS FROM THE SIDE OF GOVERNMENT
Place Your Picture Here

Foreign capital
Economics planning
Centralization and Decentralization
 Strategy of Development
 Financing of Plans
 Progress under planning
Infographic Style

o your Reports and Presentations.

PowerPoint Presentation Templates

 .

$ $ $ $ $ $
Thank You