The worldwide economy has been affected by the Corona virus. In such a situation, India’s economy is also not untouched by this. But India’s economy is still stuck in recession. And there are many reasons for this. Because of which the Indian economy is still going through a difficult phase.
Recently, the central government said that it does not have the money to pay GST. In such a situation, you can guess how the Indian economy is going through a difficult period. But what is the real reason behind this? It is important to know this.
Correct economic package not provided
The economy of the world was affected by the Corona virus. And to revive these economies, countries around the world announced economic packages.
In such a situation, the Indian government also released a package of 20 lakh crore rupees to uplift the economy of India. But if you look at this package carefully, then there is no mention of giving direct benefit to people anywhere. Much of the talk has gone about the loan. Concession is given in the loan itself. And the industries which were not able to repay the loan amount to the banks. His date was also extended.
But no direct benefit has been given to any person in it. At the same time the economic package was only and only for big industrialists. There was not much left for small industrialists in this. In such a situation, the small industrialists could not take any advantage of the economic package. There is a need to lift the Indian economy from below. The government should have given direct cash subsidy to the people. But this was not done.
However there can be reasons for this. At this time the economic health of the Government of India is not good, the government should directly transfer cash to the people. But even if people were given a little bit of money, it would have increased demand again in the Indian economy. And the Indian economy could start again. But this could not happen.
Reduction in demand
The economy of any country is based on the demand there. The Indian economy has seen in recent times that there is a huge reduction in demand. And people are not spending their money. People are worried about their future. And they are also apprehensive about their employment. In such a situation, Indian people are focusing on saving more and more. And ₹ 1 is also not ready to be removed from his pocket.
This increased the difficulties of the Indian economy even more. In such a situation, the government should take measures for demand-generating factors by not supporting industrialists. This will help the Indian economy to rise. Until the lower sections of the Government of India will not benefit. Till then India’s economy will be able to come out of recession it is difficult to say.
Indian economy stalled due to unemployment
The unemployment rate in India has reached its highest level. According to a report in NDTV, the unemployment rate in India has reached around 9%. Which is the highest in the last 70 years.
This has brought the Indian economy to a standstill. If the Indian government wants to revive the Indian economy, then first it will have to create jobs for the people. According to a report recently published in the BBC, in the last 6 months, nearly two crore people lost their jobs. The same people are being threatened by their jobs. In such a situation, experts are speculating that in the coming time more jobs can be lost.
If this pace of job loss is not stopped, the difficulties of the Indian economy may increase even more in the coming days. However, the Indian government asked the industrialists not to expel people from their jobs. But in return, the Indian government did not give him any relief. In such a situation, Indian companies removed large number of people from their work.
In such a situation, when people will not have money, then why would they buy anything in the market? And if there is a decrease in demand, the economy automatically becomes sluggish. If the Indian economy is to be uplifted, the government must first provide employment for the people.
Petrol and diesel will be expensive
According to a report recently published in Navbharat Times, the Indian government levies about ₹ 35 tax on petrol and diesel per liter. Which is the highest ever. Petrol and diesel prices have become much cheaper in the international market at this time. But its benefit is not being given to Indian customers. Due to the expensive petrol and diesel, it also has a direct impact on the Indian economy. Food and drink has become expensive. And the prices of everything have increased from 10% to 20%.
In such a situation, the affordability of people is also being affected. The purchasing power of the rupee is also being affected due to rising inflation. And people are not able to buy more goods. In such a situation, the Indian economy has stopped at this time.
The steep increase in petrol and diesel prices is also due to GST. According to a recent report, the GST collection in India has reached its lowest level. In such a situation, there is no way for the government to increase the prices of petrol and diesel. But even if the Government of India has to lift the economy, the prices of petrol and diesel will have to be reduced. According to a report recently published in BBC, this year’s GST collection of India has so far been one lakh 86 thousand crores. Which is the lowest level yet. Experts are hoping that in the coming days, the GST collection may work even more.
Central government’s financial condition is not right
Recently, in front of a parliamentary committee, the central government had said that it does not have the money to pay the states share of GST. In such a situation, you can get an idea of the financial condition of the central government. At the same time, India is constantly taking loans from abroad. This keeps the Indian economy under constant pressure.
According to a report by ABP News, India’s economic deficit has reached 91% of GDP this year. Which is the highest in the last 70 years. India’s fiscal deficit is also increasing steadily. And it has reached far beyond its goal. The government had decided to limit the economic deficit to 3% for this year. However, it does not seem to be happening now. And the fiscal deficit has gone above 3% in the first half itself.
Reserve Bank of India said the government should take steps
Recently, the Reserve Bank of India has said that all the steps were to be taken by the Reserve Bank. Have been raised. Now if the economy has to be raised, then the central government will also have to take some big steps at its level. The Reserve Bank said that the Government of India will now have to set its targets. And you have to work according to the goals.
On behalf of the bank, it was said that the government will have to complete its projects on time. Which can help in uplifting the Indian economy. Let us tell you for information that recently the Reserve Bank of India had extended the time limit for repaying the loan, giving great relief to the Indian industrialists and common people. However, the matter is still going on in the Supreme Court. Where the Indian citizen is not ready to pay interest for this period. While the central government said that it has decided. And we do not want to interfere in the decision what the Reserve Bank of India decides?
Self-reliant india is just a dream
Recently, Prime Minister Narendra Modi said that India will now have to become self-sufficient. Prime Minister Narendra Modi had said that if India becomes self-reliant, it will benefit the whole world.
However, the dream of a self-reliant India still seems far-fetched. We import most of the goods from outside. Recently, Defense Minister Rajnath Singh had banned 101 such items that meet our defense needs. But still in large quantities we are also importing goods for defense needs from outside. In such a situation, Indians have to be elevated and if new means of investment are to be opened, then privatization will have to be encouraged constantly. However, the Indian government is constantly promoting privatization. Experts are hoping that if it promotes personalization at the same speed, it may take about 10 to 15 years. Which is a very long time.
At the same time, Indian industrialists will have to be encouraged to invest in various sectors. For this, a new scheme can be launched. Which includes tax exemption for Indian industrialists. If this is done, Indian entrepreneurs will be ready to invest in new areas. And the economy will rise. However, it remains to be seen how long the government can take these steps.