If not then how much time or what would be the impact domestically and internationally. This is a serious infection which the government has caught hold off and its symptoms are being seen in the economy. According to Dr. According to the committee this high fiscal deficit can dubitable due to Both investment and inflation have taken a toll of the fiscal areas of the economy affecting it seriously.
The tax revenues have been less of around Rs. To undermine and put forward the facts and causes which is hampering the Indian economy and determining the solutions for it. The data used here for the formulation of the project is secondary data and these data are taken into account form the Secondary sources.
According to Grant Thornton Global Dynamism Index the country has been adjourned as the 5th best country around the globe for their growing dynamic business. Net direct tax of the country rose by During April-December tenure of compared to previous collection of , cr. The World Tea and Coffee Expo held in Mumbai from Feb estimated that the coffee market in the country is expected to reach Rs 2, cr.
The luxury car segement in the country is also set to boost over both medium and long term according to Mr. There has been some fluctuation in the Indian exports but the equilibrium is being maintained. The exporters have been looking at new markets in Asia and Africa so as to overcome the international slowdown. The Indian rupee has been falling very rapidly against dollar and other currencies as well in the market.
It fell to a low of To curd the currency fall the RBI has intervened to sell dollars so as to save rupee. This effect is due to uncertainity in global market, slow inflows of funds from abroad and pressure from oil importers are also there which demand dollars so as to buy crude oil. According to some analysts the Indian currency could see a new record low due to prevalent international market conditions. Ex Finance Minister Mr. Pranab Mukherjee said that the global slowdown due to Eurozone sovereign debt crisis has impacted the Indian economy through deceleration in exports, widening of trade and current account deficit, decline in capital flows, fall in the value of Indian rupee, stock market decline and lower economic growth.
Steps like supply of forex to curb the falling currency, increase in the foreign investments in the infrastructure industry, liberalization of external commercial borrowings is being taken into action. The RBI has also taken steps to keep in check the speculation in the forex market which includes raising of the NRI deposit interest rates, easing availability of export credit and stipulation that 50 per cent of balances in the Exchange Earner's Foreign Currency Account be converted into rupees balances.
Large widening of current account deficit due to rise in crude prices, imports of gold and silver. The rise in gold import is due to the fact that the yellow metal is used to hedge against inflation. First the American economy collapsed then European economy suffered from the formers economy failure. Due to this the dollar and the euro currency could see come beating in the international market. Due to collapse of American economy the FII are withdrawing their money from Indian stock markets or selling the domestic stocks. Due to bad economic conditions the fiscal deficit and current account deficit are highest.
The coalited UPA government has gone slow on policy reforms and librelizing certain norms. This has created a doubt in the foreign investors mind weather to invest or enter into the country full fledgedly or not. The international investors in the country wrote a letter to the PM regarding this and said that it would be difficult to conduct business with the country. Ex finance minister Mr. This collapsing of the economy will be reviewed by the finance minister P Chidambaram and soon some growth reviving measures would be taken.
Fiscal Policy of India from to - Words | Bartleby
Due to inconsistent monsoon last year the agriculture output of was 1. A sudden hault to the spending off by the Indian households are warning signals for the Indian economy and its falling growth rate. The auto industry says that due to high rates if interest and inflation are denting the consumers spending which can been see by the data of only 4.
India now giving a marking of BAA-3 Stable which is the lowest investment grade, this is almost equal to consider it a junk status and the Indian cos. Fitch said due to delay in reforms and weaker economic growth the country will miss the fiscal deficit target of 5. The agency pegged the fiscal deficit between 5.
Now finance minister Mr. Chidambaram said he is committed to restricting the fiscal deficit to 5.
- Fiscal Policy of India from 1991 to 2011.
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- Indian Economy: Overview, Market Size, Growth, Development, StatisticsIBEF?
Due to loss of currency, problems are bound to be created in the economy. India Inc. For every rupee depreciated the OMC under recovery shoots up to around cr. In the stock market if a person is having a stock of an oil and gas company, fertilizer, tyre, or of infrastructure your returns will surely take a hit as they have to shell out more of rupee to get their raw material from abroad. The Indian GDP slipped to a 9 year low at 5.
The last time when the same growth was recorded was in the third quarter FY when global financial crisis occured. The fiscal year of ended with growth rate of 6. Upon the projected poll of the economists it was expected that the growth rate would somewhere fall around 6. According to the data released by the commerce and industry ministry the infrastructure industries ended the fiscal period at 4.
The IIP was around 2. The agriculture sector grew at 1. Foremost the industries of petroleum, coal and steel, electricity, cement were also the victims of slow growth rate. BSE Sensex recorded the lowest point of the day after the release of the data indicating that the Indian economy grew at a slow pace thus indicating that the corporate profits will take a dip. Nonetheless the job creativity has also taken a toll.
India has retained its position as the third largest startup base in the world with over 4, technology startups, with about 1, new start-ups being founded in , according to a report by NASSCOM. India's labour force is expected to touch million by , based on rate of population growth, increased labour force participation, and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.
With the improvement in the economic scenario, there have been various investments in various sectors of the economy. Some of the important recent developments in Indian economy are as follows:.
The Union Budget for was announced by Mr. A total of Rs Budgetary allocation for infrastructure is set at Rs 5. All-time high allocations have been made to the rail and road sectors. Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India.enter site
Essay on India and Economic Growth | Economics
Narendra Modi, Prime Minister of India, has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy, to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 per cent.
Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy. India is also focusing on renewable sources to generate energy.