This is very amazing to know that Indian economy are facing economic crisis because India is one of the world's fastest growing economy. The GDP growth of India decrease from 8% to 5% this is very bad because this type of decrease cannot be seen in last 5 years. Even when the whole world are facing economic crisis in 2009 the Indian economy cannot be effect that time the growth rate of Indian economy is 9% in 2009 so it is amazing to know that Indian economy are facing economic crisis in 2019. Our government are blaming for the economic crisis to the trade war that are going between America and China but this is not right because the growth rate of China is 6% even the China has very big economy the economy of China is 12 trillion and we all know that the GDP growth rate of a country decrease if the country have very big economy so the question that come what is the main reason about the decrease of Indian economy let's talk about this.


What is the main reason about the decrease of Indian economy?
• Non-profit asset (NPA) - NPA means the loan that bank give to the company and the company do not give the loan back to the bank this type of loan is called NPA or non - profit asset. This type of cases are seen very much in 2019 so this is also a big reason in the decrease of Indian economy.
• Import and export- import and export is also important thing that affect the economy.In India the import is much bigger than the export the main thing that India import is crude oil. Crude oil is the 40% of all the things that India import and indian government are trying to control this. Indian government promoting the electric vehicle to decrease the demand of crude oil by which they can decrease the import of crude oil. This is very good step taken by our government because by this the use of petrol decrease and the pollution also decrease.
• Unemployment- In India the unemployment rate is very high which leads the waste of menpower the people who can become asset for the country and help to increase the economy they are become a liability for the country economy. So Indian government should work on this increase the number of jobs and make people employed. Education and health can help in this.
• less consumption.- Because of unemployment people do not have the money to buy things by which the demand of things decrease which affect the economy so to increase the demand and the consumption of things employment should increase. Less consumption can be seen in every sector of Indian market example in automobile sector the demand of automobile decrease by which automobile industry faces a loss. Also because of GST the cost of many things increase by which people can't able to buy that thing.
• Global slowdown - Not only in india the slowdown can seen in many countries in the world. This is happening because of the trade war between America and China. America increase the tariff on the product of China and also said to other countries to do the same thing on chinese product american not stop in this thay also said to their company to take back their manufacture unit from China to America in the response of the China also increase the tariff on the product of America. Because of this in global markets in the price of many product a fluctuation can be seen. Many economist think that if this trade war become more serious so a global slowdown can be seen.
• Rupee fall - The fall of cost of rupee also a big reason in the decrease of indian economy. Many people don't know that the cost of rupee are depend on crude oil if the cost of crude oil decrease the Rupee is stand strongly in front of dollar and if the cost of crude oil increase so the cost of rupee decrease in comparison to the dollar this is because india import very much crude oil and give the payment in US dollar.
• Population Rising - Many people think that much population is very good for country and many people also think that more population is bad for the country. I think that more population is good for country but unlimited population is bad for country because it increase poverty rate and the unemployment rate also increase because of this which put a bad effect on economy and this same thing are happening in India. India have very high population a government are trying to control this.
The first step that should taken by our indian government is to decrease NPA and change the loan facility policy. Government should boost the manufacturing sector by which the more employment can generate by this people earn money and they can buy things in market and because of this everyone get benefit because of this the export is also increase. India should take benefit of the trade war going between America and China by inviting the company which are leaving the China to start a business in India.
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