InvestorQ : Does the continuous slowdown of the Indian economy require any action now?
Mahima Roy made post

Does the continuous slowdown of the Indian economy require any action now?

Aditi Sharma answered.
1 year ago
The Indian economy has stooped down to its worst levels in the past 42 years and would definitely require a lot more than just imagination. Estimates for the financial year ending 31-March-2020 quote the economy’s inflation-adjusted growth rate to be 5%, third year of the slowdown in a row, even the quoted figure could be more optimistic than the actual growth. Indian state governments have a deficit of about 3% of GDP, comparatively higher than the budgeted GDP of 2.6%, which means the financial savings of the economy are fully exhausted and due to this Indian corporate borrower is seeking for overseas debt market.

Indian economy needs more realism, no rosy projections will help the economy to grow unless the actuals stand at least somewhat near to the projections.  India has already been warned by S&P Global Ratings that if the country does not show significant recovery in economic growth, its rating might get crushed. So, the country needs to get out of the economic slowdown, be it at a slow pace.

Meanwhile, the increasing tension between the US and Iran will sustain oil prices at higher levels in a weakening global economy, this could further, hurt India as there will be a loss of discretionary consumer spending within the country and abroad.
So, India needs actual actions and measures to come out of this slowdown phase and some real remedies are required and not any false promises.