Gross Domestic Worries Continue in Indian Economy
The disaster has been evident in all the sectors in an alarming way. The numbers predict that nothing would be well in the coming quarters too.
Going by the trend, one need not be an expert to predict what the future holds for the country’s economy. Ever since the demonetization, the omens were there for all to see. Add to it the impromptu lockdown.
All the sectors have now taken a beating like never before, and the figures forecast an even more disastrous period for the economy in the coming quarters too. At 23.9%, India hit the worst ever contraction in the first quarter of the current financial year.
Former Congress president and MP Rahul Gandhi criticized the government for their policies that led to the economic crisis. He said that the note ban, GST and lockdown as the reasons for economic collapse. The Gandhi scion added that the government is leading the citizens to economic slavery. Rahul mentioned the 2008 recession and how India has survived the crisis by supporting funding to the unorganised sectors. The unorganised sector is driving the Indian economy and, those we are facing now is the result of the collapse of this sector, he added.
Most of the employees in the unorganised sector are in the construction sector in India. As per the latest GDP figure, the construction sector has faced the worst contraction, which is more than -50%. The sectors like trade and hotel, manufacture and mining are following the same trend with a massive contraction. Economists predict that a quick recovery is unlikely and it will result in deeper trouble for the employees in the unorganised sector.
Though the unorganised sector figures depict how India’s poor are struggling, the data in the commercial vehicle, cement and streel sectors raise alarm for an inevitable economic collapse across different economic classes. It also proved that the consolidation packages announced by the Centre and various states are not sufficient enough to boost the struggling economy.