A Study on Indian Economic Slowdown and the Way Out

Abstract

Indian economy is going through a phase of recession, with the country's real estate, automobile, construction sectors and the 8 core sector industries- including coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity are facing a serious and constant decline. GDP growth slowed to a six-year low of 4.5% during the first quarter of 2019. The main reasons attributed to the fall in the GDP growth rate were - contracted manufacturing activity, weakened investments, and lessened consumption demand. Reduction in growth will automatically lead to hampering of developmental activities and poor development indices which will lead to slow economic development. This paper is an attempt to explain the current economic slowdown faced by our country with facts and data that shows that our economy is in recession. Also this paper gives a brief introduction about the nature of the economic slowdown that India is facing and also the peculiar problem that it is experiencing what is known in the economic jargon as “stagflation”. And also it comprises the various fiscal and monetary measures taken by the government and inherent drawbacks in it as indicated by few eminent economists like P.Chidhambaram and the Nobel laureate Abhijit banerjee. This paper also provides some important solutions for this recessionary situation to revitalize and take it to the growth trajectory.