A Pervasive Slowdown
A Pervasive Slowdown
Krishna Jha discusses the Indian economy’s current phase of gloom – fall in consumption has shrunk demand, lowering manufacturers’ confidence
Krishna Jha

A sense of gloom is swallowing up all the glow there is in the Indian economy. The notice-able among them is fall in the consumption pattern. Among the factors leading to such dire miseries is the absence of jobs. That, in its turn, has led to a fall in the capacity to buy even the essentials. Inability to meet these basics makes the quality of life frustrating.

For those from the lower depths, meals have started shrinking. The reason is not a lack of food, but a steep fall in their purchasing power. Those who grow food are no better; they too are starving. They have been forced to lower the prices of grains because there is no adequate minimum support price; whatever the middleman offers, they accept. They cannot recover even what they have spent.

Debts and their interest remain unpaid. Farmers are pushed to the wall with only one option left– to end life. Diminishing farm income has other impacts too which include migration, towards non-farming sectors.

The non-farm activity is also in the grip of crisis. The downward trend in the affordability can be traced to nearly 30 per cent drop in capital expenditure by the government in the June 2019 quarter. Then there is the falling growth rate in the GDP which has never been so low. Meanwhile, the entire economy suffers from slow down. In our country, the economic activity itself varies state-wise, sector-wise and influences the issue of employment.


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Delhi 12 Oct 2019