Description
Present condition of Indian Economy, because of the mismanagement and gov. policies
INDIAN ECONOMY
AN OVERVIEW By A.S.tiwari India, the third largest Economy in Asia, has been emerging as one of the strongest economic power. But since last few years the economy has been hit because of many factors. The growth rate of Indian economy was at the slowest pace during past two years. Among the worst hit industries are the manufacturing and the Mining sectors. These industries have suffered the most. Inflation has been on the rise since last few years. All the measures to contain the Inflation were not effective. Rising food prices has hit poor the most. To contain the high rate of inflation, the Reserve Bank of India has increased the interest rates more than thirteen times during last two years, but was of no avail. Because of the financial crunch the demand has gone down, and has badly hit the manufacturing sector. In addition there are many scandals and corruption charges against the government and the officials. The decisions for reforms cannot be taken because of the indecisive government and critical opposition. The global economic slowdown has also affected the export demand. These factors have dwindled the confidence of the investors, who are looking for better investment options. The government has to take some serious measures so as to come out of this stage. Tough times are ahead for the Indian Economy.
doc_567533696.doc
Present condition of Indian Economy, because of the mismanagement and gov. policies
INDIAN ECONOMY
AN OVERVIEW By A.S.tiwari India, the third largest Economy in Asia, has been emerging as one of the strongest economic power. But since last few years the economy has been hit because of many factors. The growth rate of Indian economy was at the slowest pace during past two years. Among the worst hit industries are the manufacturing and the Mining sectors. These industries have suffered the most. Inflation has been on the rise since last few years. All the measures to contain the Inflation were not effective. Rising food prices has hit poor the most. To contain the high rate of inflation, the Reserve Bank of India has increased the interest rates more than thirteen times during last two years, but was of no avail. Because of the financial crunch the demand has gone down, and has badly hit the manufacturing sector. In addition there are many scandals and corruption charges against the government and the officials. The decisions for reforms cannot be taken because of the indecisive government and critical opposition. The global economic slowdown has also affected the export demand. These factors have dwindled the confidence of the investors, who are looking for better investment options. The government has to take some serious measures so as to come out of this stage. Tough times are ahead for the Indian Economy.
doc_567533696.doc