Slowdown of Indian Economy and Improvement
Main Points to Highlight : The Indian economy exemplified as a success story of the third world economies just a couple of years ago is at crossroads today limping at a pace slowest in almost a decade showing signs of drifting towards the pre 1991 era. Ironically, the man who steered us clear of the 1991 storm, and is at the helm of affairs now is helpless and at loggerheads owing to constant accusations of policy paralysis, corruption allegations and leadership crises weighing down his options. Some of the factors are: high and constantly increasing Current Account Deficit (CAD); sharp deceleration of industrial production; India's expansionary fiscal policy and global financial crisis. Some hoard of measures that can be implemented to bring everything under control.
Indian economy is described as an economy which is tenth largest in the world by nominal GDP and third largest in terms of purchasing power parity. This economy was growing at a fast pace in recent past has been plagued by such a slowdown that our currency is on a free-fall and it is not able to ascertain its lower limit.
Economy of a country depends on number of factors which are divided in three general categories like Primary, Secondary and Tertiary. Over independence-era, Indian economy till 1991 was based on a mixed economy which combines the features of capitalism and socialism resulting in interventionist policies and import substituting economy. This economy has always given much emphasis on agriculture which is called as backbone of the nation as the percentage of people dependent on it is approximately 60% of the total population. But the misery is that its contribution in total GDP of the nation is less than 10%.
Looking on the various sectors that contribute to make the Indian economy like agriculture, trade, services etc. In context of Indian economy, the most important one is the trade aspect that consists of import, export and various business processes. Trade aspect alternately tells us about the industrial growth of a nation and its dependence on other nation. Recent slowdown of economy is attributed to the fact that import has exceeded the level of export that lead to heavy deficit of balance of trade.
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