The Indian economy is going through a difficult phase these days. And the continuous recession has dominated the Indian economy. The government is constantly asking banks to distribute cheap loans. And banks are also constantly distributing cheap loans. But there is another problem that no one is going to take loan or in such a situation, when no one is going to take loan, whom should the bank distribute the loan to.
The Reserve Bank of India continues to keep interest rates cheaper. Asking people to borrow large amounts of debt. The government is also ready to take a guarantee for this. But still no loan taker is getting from banks.
Recently the IMF has released data on India’s economic growth rate. Which are scary. According to IMF data, India’s growth rate this year will be -10.5%. Which is the worst in developing countries.
Why the Indian economy is not able to emerge from the recession despite the government distributing cheap loans
Now the question arises here that despite the government constantly distributing cheap loans, why is the Indian economy not picking up? While the Government of India figures show that the government’s deficit has reached -14.5%.
Due to lack of demand in the economy, large industries are not taking loans. And the small industries who are taking loans are also taking earlier pending loans. No industrialist is ready to take a new loan.
While the government is continuously pressurizing banks to give new loans to the people. So that they can start their new industry. But when there is no demand in your economy, how will you start a new industry? This is a matter of consideration.
Another major problem is that people who want to get new loans are about debt. Their debt is already stuck. In such a situation, banks are not able to give loans to these people. Or those who are giving loans, they are paying at higher rates. Because of this no one is taking new loan. And the Indian economy is not emerging from the recession.
Deposit capital level is increasing in banks
You can get a rough idea of India’s economy by the fact that the level of capital deposited in banks is constantly increasing. Which may not be a good sign for the Indian economy. People are not spending money and the money left with them. That too they are depositing in or keeping with banks.
Due to this, the deposits of people in banks are constantly increasing. Which is a new headache for the government. According to recently released data, deposits in banks have reached their highest level.
This data is based on the banking data of the last 30 months. One thing is clear from this that people in India are not in the mood to spend yet. Earlier, experts were saying that due to the festive season, a lot of money has been spent by people in the online market. And new shopping has been done. But these figures are proving false in the face of deposits in banks.
Why the government’s economic packages are not able to help the Indian economy
The government is constantly announcing an economic package to bail out India’s economy from recession. But the problem with India’s economy is also that as the government is announcing the economic package. The Indian economy seems to be laughing even more in recession.
India is the only economy in the world where the government is announcing the economic package o. But they do not see any difference on the ground. Recently, the government has released a new economic package of more than ₹ 100000 crore. Direct assistance has been given to the state government in this. But what will happen to this package? And how much impact will this have on India’s economy? It will be interesting to see.
Apart from this, the government is constantly making efforts to increase the demand in the economy. Recently, the government had issued travel allowance scheme for government employees. So that the Indian economy can be started once again, but how much Indian economy will benefit from this scheme cannot be said right now.
What did the countries of the world do to uplift the economy
If countries around the world see what they did to get their economy out of recession? So it is completely opposite from India. The government of India asked people to take loans to uplift their economy. And the debt of more than 1.5 lakh crores of big industrialists was waived. While direct help was not given in the hands of the people.
Now we take the example of Britain here, in the UK every person was given a fixed amount every month and 80% of those who were going for jobs were paid by the government. Whereas nothing like this was done by the Government of India. As well as shopping vouchers countries like China and Denmark gave to their people.
Apart from this, if we talk about America, then there were around ₹ 90000 given to every person there every month. However, it is not possible that the Government of India can provide financial help to uplift the people of India. But some people should be given as relief. This help could range from ₹ 6000 to ₹ 10000. Which was not done by the government. The debt that was waived by the industrialists should have been passed on to the government. So that demand can be generated in the economy.
Experts say that the problem in India is not that industrialists are in debt. India’s basic problem is that demand is not arising in India’s economy. The government has delayed too much in considering this.
What India and international agencies have to say about India’s economy
In the month of April-May, the international agency IMF said that the Indian economy could slip around 4.5%. In response to this, the Reserve Bank of India data also came and the Reserve Bank also estimated -2.5% growth rate for India’s economy. However, as time passes, the situation is getting worse. Recently India’s economic status report has been released by IMF. Which states that India’s economy could fall by -10.5% in 2020.
As the government released the economic packages, the Indian economy is going down further. So, should we assume that the government is taking wrong steps for India’s economy? This is what the figures of international and Indian economic agencies tell us. The Government of India should direct money into the hands of the people. But this was not done. And the result of this is the Indian economy is suffering today.