Should We worry about Economic Slowdown?

    • India Times
    • Publish Date: Dec 25 2019 1:22PM
    • |
    • Updated Date: Dec 25 2019 1:22PM
Should We worry about Economic Slowdown?

On Monday the IMF urged the India government to take steps quickly to reverse the economic slowdown of an economy that has been one of the engines of global growth. Declining consumption and investment, and falling tax revenue, have combined with other factors to put the brakes on one of the fastest-growing economies in the world, the IMF said in its annual review. 

After lifting millions out of poverty “India is now in the midst of a significant economic slowdown,” Ranil Salgado, of the IMF Asia and Pacific Department, told reporters. “Addressing the current downturn and returning India to a high growth path requires urgent policy actions.” 

However, the government has limited space to boost spending to support growth, especially given high debt levels and interest payments, the fund warned IMF chief economist Gita Gopinath last week said India’s slowdown had “surprised to the downside,” and said the fund is set to significantly downgrade its growth estimates for the Indian economy in the World Economic Outlook which will be released next month. 

The IMF in October slashed its forecast for 2019 by nearly a full point to 6.1 per cent, while cutting the outlook for 2020 to 7.0 per cent. Salgado said India’s central bank has “room to cut the policy rate further, especially if the economic slowdown continues.” The Reserve Bank of India (RBI) cut the key lending rate five times this year to a nine-year low, but at its last meeting, earlier this month defied expectations by keeping policy unchanged. 

The central bank slashed its annual growth forecast to 5 per cent from 6.1 per cent, as consumer demand and manufacturing activity contracts. India’s economy grew at its slowest pace in more than six years in the July-September period, down to 4.5 per cent from 7.0 per cent a year ago, according to government data. Salgado said “the government needs to reinvigorate the reform agenda,” including restoring the health of the financial sector in order to “enhance its ability to provide credit to the economy.” 

The Indian economy has been in doldrums for some time, but the government had for long refused to acknowledge it and made all kinds of claims like movies running in Housefull theatres is proof that there was no slowdown. One minister even said that do not go by the numbers. 

But eventually, the government was forced to admit everything was not well with the economy. Finance Minister Nirmala Sitharaman told the Rajya Sabha last month that the Indian economy may have slowed down but there is no threat of a recession. Last week, Prime Minister, while speaking at an ASSOCHAM event reassured investors about recovering from the slowdown. “India has witnessed such ups and downs previously as well,” Modi said adding that “And each time, we have emerged even stronger. 

That’s why even now India will forge its path ahead with firmer determination and confidence.” Earlier, Home Minister Amit Shah had blamed the global slowdown for the slow growth of the Indian economy. 


What's your take? Share your views in the comments section below.


POST YOUR OWN ARTICLE, PHOTO & VIDEO

SIMPLY FILL DETAILS & POST


 
SIGN UP & EXPLORE MORE...
*


*
* *
* *
img
REGISTRATION SUCCESSFUL...
THANK YOU FOR REGISTERING
  • About Us

Times Newspaper in Education (Times NIE) is a novel program that helps students ‘Stay Ahead’ and aims at making ‘Learning Fun’. It introduces concepts that help individual growth and development beyond school curriculum.

A brainchild of The Times of India, the world’s leading English newspapers, Times NIE nurtures progress and innovation. Adapted from the international concept, Times Newspaper in Education program (Times NIE) was initiated in India in 1985.

Today we have over 3000 schools and over 9 lac students subscribing to the programme, spanning 16 cities viz. Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai, Hyderabad, Ahmedabad, Kochi, Lucknow, Coimbatore, Chandigarh, Dehradun, Vijayawada, Visakhapatnam, and Jaipur.

The Times of India Student edition, a customized student newspaper exclusively for the students, packs a powerful punch in terms of content that leads to a smarter and superior learning experience. The information is crafted such that it finds use in classroom discussions, thus making it relevant and current. It truly gives education a new dimension by fostering the simple habit of reading which in turn paves the way for a confident, informed and aware individual. A newspaper that inspires young minds and equips them to face challenges of today’s world, making way for global citizens.

Empowering students with new cutting-edge knowledge through various educative and informative activities is a commitment and tradition of Times NIE. The programme serves as a catalyst of education and interaction, as well as a window into the minds of the quintessential Indian youth. On a significant scale Times NIE comprises diverse interesting activities and events that boost the child’s passion for learning, while revealing hidden talent.

While you are aware that The Times of India is among the leading English Newspapers across the world, it has consummated its position as an everlasting winner. With several international awards and recognitions to its credit, The Times of India and Times NIE have validated an enduring tradition of setting the highest benchmarks in every respect. We have been awarded with the two most prestigious awards, Times NIE - World’s No.1 NIE program and The Times of India, Student Edition - World’s No.1 Newspaper for the youth in 2006 by the celebrated World Association of Newspapers (WAN). In 2008 we were honoured by the International Newspaper Marketing Association (INMA), yet another international recognition for ‘Youth Audience Development’. In 2013 we were again honoured by the celebrated World Association of Newspapers (WAN) as the ‘Times NIE - World’s Best Youth Engagement Program’.

Times NIE has grown remarkably over the last three and a half decades, touching millions of children across more than 16 Indian cities. Our absolute commitment towards the fledgling generation remains undiluted and our greatest strength lies in the school partnership and commitment.

  • Times NIE World Awards
EDIT STUDENT PROFILE...



img

JOIN NOW !!!

Create or join groups, share your views, ideas through posts (Text, Pictures & Videos)

GOT A QUERY?

FEEL FREE TO ASK HERE. GET IT ANSWERED BY EXPERTS

CLICK HERE TO SEE YOUR PREVIOUS QUERIES

win

Why You Think India Is Great....