Contraction in India’s industrial output

 The growth in India’s industrial output continued to moderate led by weakness

in the manufacturing and mining segments
 Among the three key sectors, manufacturing and mining saw weaker growth,
although growth in electricity generation was stronger.
 Industrial output, as classified by the end-use of goods, indicated a contraction
in capital goods and consumer durables.
 Driven by machinery and heavy transport, capital goods production had been
on a solid upward swing till October. But since then, contraction has become
the norm for every month, with the exception of two months.
 The index of industrial production contracted and is expected to remain
muted, owing to weak exports, rural distress, credit constraints and
uncertainty over the election outcome, according to economists.
Unemployment scenario in India and its
solution
 Unemployment means a person willing to work but unable to find a qualified
job.
 The unemployed rate between ages 15 to 29 has increased since 2009-2010.
according to the Global Employment Trends the unemployment rate has
raised to 3.8%, last year it was 3.7%.
 The International Labour Organisation has said in the recent report that India
has shown rise in the unemployment in the last two years.
Fall of the Rupee- Solution

 The fall of the rupee has been quite sudden in the last few months and
honestly no one is sure how the currency will move in future.
 The RBI can ensure that export earnings come back to the country on time
while importers should be urged not to rush in to buy dollars in advance.
 the government should focus on exports and to the extent possible, especially
on the tax credit/refund part, clear the coast for exporters.
 the RBI would have to monitor the other components of demand for dollars to
ensure that there are limits to the withdrawal of dollars for other purposes
such as travel, investment, and education. 
 the capital flows need to be monitored proactively and this is where FPIs
(foreign portfolio investments) matter. The strong inflow of FPIs has the power
to rein in the rupee.