Economy slowdown

Economy Slowdown

From some days this is the most trending topic in our country that how our country economy is facing slowdown and moving towards recession. Here we are going to see how this is structural or we can say cyclical and also due to some wrong decision from government becomes the reason for that

Going back 29 years when our economy was in the position of recession and going through very bad period (somehow many can say that towards collapse) our prime minister, Dr Minoan Singh who is a great economist having a vast knowledge about this particular subject have taken a great decision for the betterment of our economy to make the economy alive again in “LPG” that is liberalization, privatisation, globalisation. Due to this there was a great reform in the economy and it not just helps the economy but also help to accelerate the economy. It facilitates our GDP growth to up to 8% that is all time high.

So again coming to this time the only reason to tell this economy slowdown to somehow cyclic and structural is our great economist have also said that it is structural but we can also not neglect that how some of the  governments stupid decisions and not able to successfully executing them is a cost of great lose to the economy

Like just for example we can see how GST is a great decision from government but only because of not successfully executing and not able to implementing this great idea cost a lot to economy. To understand this lets talk some depth of it. GST is a great idea with great vision and all we know that government earns money mostly from direct taxes and GST is the key to earn more n more taxes from the market and also register maximum firms in this so that more n more tax collection can be done and hoe important tax is we all already know that because country like India which is a developing country needs a large amount of money or fund for social work and public facility development in  basic needs like education, health, infrastructure, awareness, water system and many more . So to fulfill these funds from government is needed in large amount and it is only possible when government have a large number of money and it is only possible when large number of tax payers can increase in our country. So from this we are able to see that how GST was a great idea but only due to the failure of the whole system to not successfully execute them becomes the reason for the disaster.

This is the only one aspect we have seen there is large number of reasons and area which is becomes the reason for the economy slowdown. Let’s take an overview of these areas-

• Demonetization (how unplanned decision can harm the economy)
• Regular changing of rules (we can see in automobile sector that hoe due to regular changing of rules and guidelines can affect economy)
• Instability (the unstable face of government policies)
• Unemployment ( when a large potential is not able to earn money for the bread that is their basic need so it is obvious that it directly affect the consumption of consumers as well as economy of the country)

Above are some of the reasons for the slowdown of economy but there are many more which is obvious because for a large country which is the 7^TH largest economy of the world is not going to affect from only on reasoned. It is the aggregate of all the unfavorable steps taken against the economy in the past time.