WELCOME FRIENDS TO UNACADEMY INDIA'S LARGEST LEARNING PLATFORM
COURSE TOPIC THE HINDU EDITORIAL TIMES 9 - JUNE - 2018
AN UNEXCEPTIONAL ECONOMIC PERFORMANCE
HEADLINE It is now clear that the Indian economy is moving along a lower growth path
: AN UNEXCEPTIONAL ECONOMIC PERFORMANCE At the end of May the Central Statistics Office (CSO) released much-awaited estimates of national income for the final quarter of the 2017-18 financial year. The timing coincided with the completion of four years in office of the National Democratic Alliance (NDA) government. The government embraced the GDP figures to declare that it has successfully "accelerated growth". However, while this holds true for the past few quarters it does not when the past four years are taken into the reckoning(calculate). The facts are that the annual rate of growth since 2014 has first risen and then declined
AN UNEXCEPTIONAL ECONOMIC PERFORMANCE ALONG WHICH HORIZON? When you take a view longer, you see that on average annual GDP growth in these years is thus far, no higher than what it was earlier. Actually, by a certain calculation, it is exactly the same but such precision is hardly necessary to conclude that the NDA has not done much better than its predecessor as far as the growth of the economy is concerned. This government has generally prioritised production as reflected in its attention to the 'ease of doing business' and its flagship programme Make in India The question remains as to why the economy has not responded with alacrity to reforms that were supposedly so significant ??
AN UNEXCEPTIONAL ECONOMIC PERFORMANCE BUDGETARY STRATEGY Over the five budgets it has presented, it has maintained the share of capital expenditure but this has occurred alongside a declining total expenditure, perhaps motivated by the pursuit of less government I. 2. The rate of growth of government final consumption expenditure' has been steadily increased. The growth implications of such a strategy are obvious. The irony is that while India finally has 'inflation targeting'" it does not yet have an effective anti-inflationary policy, which would be to ensure food supply at steady price
AN UNEXCEPTIONAL ECONOMIC PERFORMANCE DESPITE THE ADVANTAGES The oil price decline continues, is that the world economy is growing steadily for the first time since the global economic crisis set off in 2007-08. Surprisingly however, India's export performance since 2014 is far less impressive than it was in the five years following the crisis. . In 2016-17, however, agricultural output rebounded, posting very strong growth. But now demonetisation, by disrupting the supply chain, is likely to have not just stymied the growth of agricultural incomes but actually lowered them.
AN UNEXCEPTIONAL ECONOMIC PERFORMANCE CONCLUSION India's high foreign reserves, advertised by the Prime Minister at Davos(Switzerland), reflect this aspect rather than dollars earned. This is costly for growth. It keeps interest rates high and demand shackled.
THANK YOU FRIENDS KEEP WATCHING KEEP PRACTICING TE & REVIEW SHARE YOUR VIEWS THROUGH COMMENT SECT
Verified & PLUS Educator | Expertise in Banking Category | 4+ Yr Teaching Experience | ALL IN ONE