India’s economy slows, stalling once thriving manufacturing
5 years, 3 months ago

India’s economy slows, stalling once thriving manufacturing

Associated Press  

NEW DELHI — Anuj Kapoor took over his father’s booming auto parts business in 2012, hoping to elevate the company from selling to suppliers to selling directly to carmakers. “How do we file tax returns when sellers don’t give us any bills?” The sudden demonetization was the “biggest policy mistake of independent India,” says Jayati Ghosh, an economist at Jawaharlal Nehru University in Delhi. It drastically reduced consumption — the bedrock of India’s economy — “because people had no cash to pay.” Supply chains, production and job markets were all disrupted, Ghosh said. The much-hyped reform triggered the current economic slowdown,” said Dr. Pronab Sen, India’s former chief economic adviser and the director of the India program at the London School of Economics’ International Growth Center. Even getting a clear picture of the overall economy is a challenge for policymakers given the huge size of India’s informal economy of day laborers and small businesses.

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History of this topic

Stagnant wages amid fast economic growth: We need an Indian Enlightenment
2 days, 16 hours ago

Stagnant wages amid fast economic growth: We need an Indian Enlightenment

Live Mint  

India’s economic growth story has been impressive. Wage stagnation amid rising inflation: The disparity between India’s economic growth and stagnant wages is stark. Chief economic advisor V. Anantha Nageswaran warns that low wages could stifle India’s long-term potential by weakening consumer demand and the quality of life for millions. This is not the template for a ‘Viksit Bharat.’ The paradox …

Mint Primer: Why consumer demand needs a quick revival
6 days, 1 hour ago

Mint Primer: Why consumer demand needs a quick revival

Live Mint  

In the second quarter of the current fiscal, manufacturing growth slowed to just 2.2% from 7% in the first quarter. This pulled down industry’s contribution to the gross domestic product growth significantly, causing overall economic growth to tank. In the second quarter, India’s GDP growth fell sharply to 5.4% as against 8.1% registered in the same period a year ago. …

​Growth chill: On the economy
6 days, 6 hours ago

​Growth chill: On the economy

The Hindu  

The National Statistics Office has confirmed emerging fears about the economy’s evidently sluggish trajectory through this year in its first Gross Domestic Product estimates for 2024-25. While the election-focused first quarter hit public capital spending, the second quarter was marred by weak demand and still underwhelming public capex, dragging GDP growth to a seven-quarter low of 5.4%. The NSO’s projection …

India must shift its policy focus to address the demand deficiency that ails its economy.
1 month ago

India must shift its policy focus to address the demand deficiency that ails its economy.

Live Mint  

Two key pieces of economic data released last month have rung alarm bells on the state of India’s economy. Rural wages have been stagnant for the last 10 years, but even general wages have shown a decline in real terms for both rural and urban areas for more than a decade. The Centre’s strategy for managing food inflation has largely …

India’s growth slowdown: Yes, RBI does need to respond
1 month, 1 week ago

India’s growth slowdown: Yes, RBI does need to respond

Live Mint  

The Indian economy is in the midst of a cyclical slowdown. The Indian government is still in the process of getting public finances back into shape after the pandemic shock, when it had to support economic activity even as tax collections collapsed. There is a compelling case for the monetary policy committee, which is meeting this week to decide its …

Congress criticises PM with 'voodoo economics' jibe over slowing GDP growth
1 month, 1 week ago

Congress criticises PM with 'voodoo economics' jibe over slowing GDP growth

India Today  

Congress on Tuesday took a dig at the central government over the GDP growth slowing to a near two-year low and said that Prime Minister Narendra Modi's "voodoo economic policies" put India in the middle of a vicious economic cycle of low growth, no jobs, low income and high prices. "Thanks to Narendra Modi and his voodoo economic policies, India …

Size matters: Decoding Indian manufacturing’s problem of scale
1 month, 1 week ago

Size matters: Decoding Indian manufacturing’s problem of scale

Live Mint  

New Delhi: The production-linked incentive scheme—one of the ways in which this government was hoping to increase manufacturing in India—is going through a slowdown, with planned expansions to the programme being put on hold. Size does matter As of 2019, the last date for which data was available, Bangladesh’s ALTF sector employed 2.45 million people, with 66% of those working …

‘Indian economy cannot progress as long as…’: Rahul Gandhi hits out at Centre
Trending News
1 month, 1 week ago

‘Indian economy cannot progress as long as…’: Rahul Gandhi hits out at Centre

Hindustan Times  

Leader of Opposition in the Lok Sabha, Rahul Gandhi on Sunday said that the India's Gross Domestic Product growth rate has fallen to its lowest in two years at 5.4 percent. Rahul Gandhi on Sunday said India's GDP growth has dropped to 5.4 percent, the lowest in two years. The thing is clear - the Indian economy cannot progress as …

Rahul Gandhi slams govt over decline in India's GDP growth, calls for economic reforms
1 month, 2 weeks ago

Rahul Gandhi slams govt over decline in India's GDP growth, calls for economic reforms

India TV News  

Leader of Opposition in the Lok Sabha, Rahul Gandhi, expressed grave concern over India's economic slowdown on Sunday, highlighting that the country's Gross Domestic Product growth rate has plummeted to its lowest in two years, standing at just 5.4 per cent. Gandhi attributed this downturn to an economy that, according to him, disproportionately benefits a small group of billionaires, while …

At the root of slowdown: It’s politics, stupid
1 month, 2 weeks ago

At the root of slowdown: It’s politics, stupid

New Indian Express  

The murmurs and fears echoing in living rooms, bazaars and C-suites for weeks and months have come home to roost. On Friday, the ministry of statistics informed India that GDP growth in the July-September quarter, at 5.4 percent, has fallen from 8.1 percent in the same period last year—the slowest in nearly two years. The reality of a slowdown has …

IMF Sees India's Economic Growth and Outlook as Stable
2 months, 3 weeks ago

IMF Sees India's Economic Growth and Outlook as Stable

New Indian Express  

India remains the world's fastest-growing economy, with inflation expected to decline to 4.4% in FY24-25. IMF Director Krishna Srinivasan highlights the country's strong macroeconomic fundamentals, including a large and growing population, favourable harvests, and a stable fiscal situation. Srinivasan suggests that the country focus on creating jobs, removing trade restrictions, and investing in infrastructure and education to strengthen its economy …

India growth slows to 6.7% on lower consumer spending
4 months, 2 weeks ago

India growth slows to 6.7% on lower consumer spending

Hindustan Times  

India's economic growth slowed to 6.7 percent on-year in the April-June quarter, official data showed Friday, as lower government outlays and lacklustre consumer spending weighed on the world's fifth-largest economy. India growth slows to 6.7% on lower consumer spending Friday's reading still places the world's most populous country among the fastest-growing major economies globally. Year-on-year gross domestic product grew at …

How weak consumption growth is holding back the Indian economy's potential
5 months, 2 weeks ago

How weak consumption growth is holding back the Indian economy's potential

Hindustan Times  

Ashlesh —34-year-old former data entry operator at a small firm in Ghaziabad, and originally from the village of Ambar Nagar in Balrampur, in Uttar Pradesh — immediately wanted to make it big in life the day after he had lost his job. ‘As if there is no effect of the high growth here,” Ashlesh said, echoing concerns shared by Amit …

Terms of Trade | India needs to move beyond the formalisation and welfare narratives
6 months, 1 week ago

Terms of Trade | India needs to move beyond the formalisation and welfare narratives

Hindustan Times  

Since demonetisation in November 2016, the current government has been consciously following a policy of pushing formalisation in the Indian economy. In terms of share in overall GVA excluding agriculture and construction, the share of informal sector enterprises has gone down from 12% to 8.2% between 2015-16 and 2022-23. While there are no clear-cut estimates for the sector-wise break-up of …

An uneven rebound: The Hindu Editorial on the economy
1 year, 4 months ago

An uneven rebound: The Hindu Editorial on the economy

The Hindu  

India’s economy, as measured by the Gross Domestic Product as well as the Gross Value Added, grew 7.8% in the first quarter of the year. But the months ahead could prove to be more challenging with global headwinds that have hit goods exports and manufacturing already, combining with domestic pressures from the renewed spurt in inflation and the likelihood of …

India's GDP Growth: Economists Must Not Go by Face Value & Assess Data Robustly
1 year, 10 months ago

India's GDP Growth: Economists Must Not Go by Face Value & Assess Data Robustly

The Quint  

As argued before, while reviewing the macro-elements and components of growth in any statistical interpretation exercise, it’s difficult to get the full picture one needs. For example, keeping aside the base effect, the fact that private consumption demand is still woefully low, indicates how much of the low-middle income and middle-income class in India is ‘consuming less’ and their demand …

India has done well last year but lags many other nations, says former Chief Economic Adviser Kaushik Basu
1 year, 11 months ago

India has done well last year but lags many other nations, says former Chief Economic Adviser Kaushik Basu

The Hindu  

The erosion of India’s institutions is a worry and India’s leaders should tackle this problem on an urgent basis, said Kaushik Basu, a professor of economics at Cornell University. In an interview with The Hindu in the lead-up to Union Budget, the former chief economic advisor to the Government of India, talked about the state of the Indian economy, the …

Explained | Is the economy driving with the brakes on?
2 years ago

Explained | Is the economy driving with the brakes on?

The Hindu  

The story so far: At this time last December, India’s economy was on the cusp of a fledgling recovery from the COVID-19 pandemic, though the Omicron variant posed fresh speed bumps for the rebound. As JP Morgan managing director and India chief economist Sajjid Chinoy explained at a CII economic policy summit last week, 2022 was expected to see a …

What forced PM Modi's jobs push now
2 years, 7 months ago

What forced PM Modi's jobs push now

India Today  

Prime Minister Narendra Modi has reviewed the status of human resources in all central government ministries and departments and ordered the recruitment of 10 lakh people in a mission mode in the next 18 months,” the PM's Office said in a tweet on Tuesday. — PMO India June 14, 2022 Tuesday’s tweet from the PMO follows protests by frustrated job …

Sitharaman says India’s fundamentals sound because of steps taken by govt
2 years, 7 months ago

Sitharaman says India’s fundamentals sound because of steps taken by govt

Live Mint  

Finance minister Nirmala Sitharaman on Wednesday said India’s fundamentals are sound due to several steps taken by the government such as reducing corporate tax, ensuring that the economy is greatly digitized and bringing in the Goods and Service Tax and bankruptcy code. Citing a study, Sitharaman said the Pradhan Mantri Garib Kalyan Yojana reduced the probability of borrowing money significantly …

Private consumption expenditure and demand: Please ma’am, we need some more
2 years, 11 months ago

Private consumption expenditure and demand: Please ma’am, we need some more

Live Mint  

Slowdown in personal consumption is the single biggest problem facing our economy. The double whammy of lower employment and Covid-19 has meant a significant reduction in consumption for low and lower-middle income households. This has meant a delayed recovery on many key sources of consumption – automotive, high value durables, OOH and discretionary spends like retail, restaurants and personal care. …

India’s economy and the challenge of informality
2 years, 11 months ago

India’s economy and the challenge of informality

The Hindu  

Since 2016, the Government has made several efforts to formalise the economy. Currency demonetisation, introduction of the Goods and Services Tax, digitalisation of financial transactions and enrolment of informal sector workers on numerous government Internet portals are all meant to encourage the formalisation of the economy. Transformation in Asia The defining characteristic of economic development is a movement of low-productivity …

Has India’s Informal Economy Really Shrunk? The Actual Story Is Different
3 years, 2 months ago

Has India’s Informal Economy Really Shrunk? The Actual Story Is Different

The Quint  

A recent edition of “Ecowrap”, a publication of the research team of the State Bank of India, has claimed that India’s informal economy has sharply declined from 52.4 per cent in 2017-18 to between 15 and 20 per cent in 2020-21 in the three years since 2017-18. In the former, the share of the informal economy declined from nearly 75 …

Bitter home truths for migrant workers
3 years, 10 months ago

Bitter home truths for migrant workers

Live Mint  

ARARIA/NEW DELHI : Bergachi Chowk is a busy intersection, a short ride away from Araria town in northern Bihar, an impoverished hub of distress migration. Impact of slowdown View Full Image After completing his graduation in Delhi, Naser Siddiqui returned home to start a garment store instead of scouting for a job Imran’s predicament is shared by several others around …

80% of India's informal workers lost jobs during COVID lockdown, 63% survived on two meals a day, shows data
3 years, 11 months ago

80% of India's informal workers lost jobs during COVID lockdown, 63% survived on two meals a day, shows data

Firstpost  

Government needs to take action regarding job security, social security benefits, food security, health benefits, and safety in the informal sector in such a way that it not only manages the current crisis, but also immunises the sector from future shocks The nationwide lockdown announced on 24 March, 2020, mandated the suspension of all services and establishments with relaxations to …

A path for the Indian economy to find its way out of the woods
4 years ago

A path for the Indian economy to find its way out of the woods

Live Mint  

As much we would like to forget 2020, it is unlikely we will anytime soon. The rural economy accounts for almost half of India’s GDP and has done better than its urban counterpart, as reflected in the better performance of sectors with a rural footprint, such as tractors, two-wheelers, fertilizers and agrochemicals. Second, government support is tilted towards the rural …

India’s growth story has never seemed so endangered
4 years, 4 months ago

India’s growth story has never seemed so endangered

Live Mint  

We all knew it would be bad, but no one could have predicted just how bad. Supply and credit links, which had been largely cash-based in the informal sector, among others, remained broken even after high-denomination currency came back into circulation, and some small businesses and poorer households—we will likely never know how many—never recovered to their level of well-being …

India’s GDP Slump: A Long and Painful Road to Recovery Ahead
4 years, 4 months ago

India’s GDP Slump: A Long and Painful Road to Recovery Ahead

The Quint  

Act of god or not, even though India was expected to see a considerable economic slowdown, the contraction of the GDP by 24 percent in the first quarter of the current financial year is coming off as quite a shocker. All thanks to this, India, once the world's fastest-growing major economy, now seems to be headed for its first full-year …

Rahul Gandhi Accuses Modi Govt of Destroying Informal Economy, Enslaving it
4 years, 4 months ago

Rahul Gandhi Accuses Modi Govt of Destroying Informal Economy, Enslaving it

News 18  

Congress leader Rahul Gandhi on Monday accused the Modi government of destroying the informal sector of the country's economy and trying to enslave it. Gandhi cited demonetisation, "wrong" GST and the lockdown as three examples of the government's attempt to destroy the informal sector, that provides 90 per cent jobs to people. Asked about Rahul Gandhi's attack on the Modi …

'Demonetisation, Wrong GST & Lockdown': Rahul Gandhi Accuses Modi Govt of Destroying Informal Economy
4 years, 4 months ago

'Demonetisation, Wrong GST & Lockdown': Rahul Gandhi Accuses Modi Govt of Destroying Informal Economy

News 18  

Congress leader Rahul Gandhi on Monday accused the Modi government of destroying the informal sector of the economy and trying to enslave it. He cited demonetisation, “wrong” GST and the lockdown as three examples of government’s attempt to destroy the informal sector, that provides 90 per cent jobs to people.”The BJP government has attacked the informal structure. जो आर्थिक त्रासदी …

After sharpest GDP fall, chief economic advisor Subramanian says India witnessing V-shaped recovery
4 years, 4 months ago

After sharpest GDP fall, chief economic advisor Subramanian says India witnessing V-shaped recovery

India Today  

GDP numbers are out and they spell trouble for the Indian economy, already reeling under the pressure of the novel coronavirus pandemic and the subsequent nationwide lockdown. At -23.9 per cent, India is staring at a recession because the Indian economy has witnessed a contraction in growth for the two consecutive quarters now. Manufacturing, construction, trade, hospitality and transport which …

Early signs of India economic recovery wane as coronavirus surges
4 years, 5 months ago

Early signs of India economic recovery wane as coronavirus surges

Live Mint  

India’s economic activity monitors are beginning to flatline just months after showing signs of returning to life. Latest data from Apple Inc. and Alphabet Inc.’s Google showed mobility suffered in recent weeks after notching up an increase since May, when Asia’s third-largest economy began exiting a nationwide lockdown to contain the coronavirus outbreak. More indicators The Nomura India Business Resumption …

Special Correspondent MUMBAI
4 years, 7 months ago

Special Correspondent MUMBAI

The Hindu  

The Indian economy is likely to contract by over 10% in FY21 on account of COVID-19 impact, Arthur D Little says in a report. “India is headed towards a W-shaped economic recovery with a potential GDP contraction of 10.8% in FY21,” said Barnik Chitran Maitra, lead author of the report and Managing Partner & CEO of Arthur D Little, India …

Our GDP Woes: Demo Vs Lockdown Compared
4 years, 8 months ago

Our GDP Woes: Demo Vs Lockdown Compared

ABP News  

However, we do not even know what the size of the informal economy is. The second issue is that some of this informal economy also operates on the formal side. The informal sector means that economic activity which is not taxed directly, and which may not even be registered. Almost all businesses that use only family labour, paanwalas, sabziwallahs, many …

Opinion | Unlocking the economy: policy roadmap for India after 14 April
4 years, 9 months ago

Opinion | Unlocking the economy: policy roadmap for India after 14 April

Live Mint  

Long before the coronavirus surfaced as a pandemic, the Indian economy was in the midst of a serious downturn. The following sectors, taken together, account for more than two-fifths of India’s gross domestic product : manufacturing, mining, construction, trade, hotels & restaurants, and transport. The same sectors, taken together, also account for more than two-fifths of total employment: manufacturing, mining, …

India headed for rare quarterly contraction on lockdown
4 years, 9 months ago

India headed for rare quarterly contraction on lockdown

Live Mint  

India’s economy is poised to shrink next quarter and full-year expansion set to suffer markedly, as a three-week nationwide lockdown starting Wednesday brings activity to a standstill, according to economists including from ING Groep NV and Deutsche Bank AG. Deutsche Bank’s Chief India Economist Kaushik Das expects real GDP growth to collapse in April-June to a negative print of 5% …

Has India’s GDP Decline 'Bottomed Out'?
4 years, 10 months ago

Has India’s GDP Decline 'Bottomed Out'?

ABP News  

US Presidents In India: From Eisenhower To Trump Outside of the formal sector, data has been difficult to collect credibly in India. The manufacturing sector contracted again, which is astonishing given that the primary focus of economic growth by Modi himself was his fancy Make In India scheme. Disclaimer: The opinions, beliefs and views expressed by the various authors and …

Opinion | How Indian economy came back down to earth
5 years ago

Opinion | How Indian economy came back down to earth

Live Mint  

India's economy lost its sheen this year. Just last year, India was the world’s fastest growing major economy. Alarmingly for the Reserve Bank of India, these clogs in the financial pipes mean five interest-rate cuts this year haven't packed much punch. An academic paper by a former aide to Prime Minister Narendra Modi reckons growth over the past few years …

Opinion | Our economy needs ‘hard work’ as much as ‘Harvard’
5 years ago

Opinion | Our economy needs ‘hard work’ as much as ‘Harvard’

Live Mint  

With India’s gross domestic product growth slumping to 4.5%, concerns have arisen over how to grow the economy faster. This has reduced public confidence in the state’s institutions, which has deeper ramifications for the economy’s sustainable development than a growth dip. India’s leaders must choose a few things to do, do them well, and only then move on to other …

India's weak household consumption to curb economic growth: Moody's
5 years ago

India's weak household consumption to curb economic growth: Moody's

India TV News  

Moody's Investors Service on Monday said that India's weak household consumption will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors. Moody's has lowered its GDP growth projection for India for the fiscal year ending March 2020 to 4.9 per cent from 5.8 per cent. The major factors responsible for weakening economic …

Why India slips further among emerging economies race
5 years, 1 month ago

Why India slips further among emerging economies race

India Today  

The latest data on Gross Domestic Product showed that India is in an acute slump. Data released by Central Statistics Office on Friday shows that India, once considered as the fastest growing economy in the world, is now finding it difficult to compete with emerging economies like Vietnam or Egypt. India's economy grew only 4.5 per cent in June to …

Once the world’s fastest growing economy, India faces a slowdown
5 years, 1 month ago

Once the world’s fastest growing economy, India faces a slowdown

Al Jazeera  

India’s economy grew at the slowest pace in more than six years and the pain is widespread. “The private sector is definitely down both for consumption and investment and that’s the fundamental problem in the economy today,” said Madan Sabnavis, chief economist at CARE Ratings. “We’ll have to live with this low growth scenario for the rest of the year.” …

Softening Demand Drags Indian Factory Growth to Two-year Low in October: Report
5 years, 2 months ago

Softening Demand Drags Indian Factory Growth to Two-year Low in October: Report

News 18  

Bengaluru: India’s factory activity growth hit a two-year low in October as new orders and output rose at a slower pace, dragging business confidence to its weakest since early 2017, a survey showed on Friday, suggesting more policy easing is on the cards. “PMI data for October showed a continuation of manufacturing sector weakness in India, with sales growth softening …

Well-deserved Festschrift
5 years, 2 months ago

Well-deserved Festschrift

The Hindu  

“D eepak Nayyar —a great teacher, an eminent academic, a distinguished policymaker and a leading thinker of our times,” says the opening sentence of this volume authored by his friends and admirers from different parts of the globe. On the early stages, it remarks: “While the global polity had an alternative to the NATO powers, the global economy too had …

GDP slump in June quarter prompts growth, rate-cut revisions
5 years, 4 months ago

GDP slump in June quarter prompts growth, rate-cut revisions

Live Mint  

Singapore: Economists cut their forecasts for India’s economic growth and predicted deeper interest-rate cuts after data showed a sharper-than-expected slump in output. Goldman Sachs Group Inc. and Citigroup Inc. lowered their growth projections to 6% for the fiscal year through March 2020, while Oxford Economics Ltd. said there’s a risk the expansion could be weaker than that. Data released on …

State of Indian economy: Decoding the 5% problem
5 years, 4 months ago

State of Indian economy: Decoding the 5% problem

Hindustan Times  

On Friday, the Central Statistics Office released India’s GDP figures for the quarter ending June 2019. The measures announced in the conference held on 23 August can be classified into three broad categories and also listed in order of importance: boosting business sentiment in the economy, removing supply-side hurdles to the flow of credit and working capital, and boosting demand …

India’s economy is now riding a roller-coaster
5 years, 4 months ago

India’s economy is now riding a roller-coaster

Deccan Chronicle  

Even the political surgical strike “integrating” Kashmir failed to divert attention from the woes of investors, employees and entrepreneurs — all of whom are stuck with a similar malady: poor returns. Assume that all three reforms happen, and agricultural growth increases from three per cent per year to a high of six per cent per year. Second, nominal GDP growth …

Life after demonetisation: How India’s poor are paying the price
5 years, 7 months ago

Life after demonetisation: How India’s poor are paying the price

Al Jazeera  

More than two years on, many of India’s poor are still dealing with the effects of PM Narendra Modi’s financial reforms. Analysts say Modi’s financial reforms hit people in the informal sector – who are also among India’s poorest – particularly hard. ‘A more tax-compliant society’ Former Finance Minister Arun Jaitley said in a Facebook post on October 1, 2016 …

India’s economy is slowing, ramping up pressure on Modi
5 years, 7 months ago

India’s economy is slowing, ramping up pressure on Modi

Al Jazeera  

Slowing economic growth and high employment underscore challenges faced by Modi as he starts his second term. Government figures released Friday showed India‘s economy grew at a much-lower-than-expected 5.8 percent in the first three months of the year. The economic slowdown and high unemployment put pressure on Modi’s re-elected government and the central bank to stimulate the economy to boost …

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