India’s GDP has reached an all time low in the last 6 years, with its growth a mere 5% out of the expected 6.7% which believe it or not is a trivial difference in the world of economics. The RBI has reduced the repo rate by at least 115 points! (repo rate is the the rate of discount offered by a central bank such as the RBI for repossession of governmental assets). The RBI also claim that a big push on infrastructure building is required to revive consumer demands.
Many economists are saying that there will be a slow down of growth for the next two three years, while proper reforms are being made to encourage business. Modi government claims that they’re taking the appropriate actions but so far no changes have been announced.
The budget failed to provide appropriate funding. The banking sector has announced the merging of ten state banks to save a sector struggling from massive debts. They are also encouraging foreign investments and single brand retail sectors. Many markets, such as auto-sales, real estate, domestic air traffic, petroleum sales have gone down significantly.
what do you think? Will the government be able rescue the economy before it’s too late? Comment down below…