Art & Culture
- Right to access internet is fundamental right declares Kerala High Court
- Legal rights of Deities in India, Difference in Natural and Juristic Person
- Bru refugees refuse to return to Mizoram
- No animal sacrifice in Tripura temple-Orders High Court
- EC’s Order on Reducing Sikkim CM’s Disqualification Period
- Law Ministry issues corrigendum to Jammu and Kashmir Reorganisation Act
- Appointment of the Judges in India.
- New Chief Justice of India- How is CJI appointed?
- Indian Penal Code 1860, HM Amit Shah wants to Overhaul IPC
- National Population Register (NPR) 2020
- Whistle Blowers Allegations on Infosys
Governance & Social Justice
- 60% girls in Delhi colleges anaemic
- Niti aayog’s School education quality index
- Multipurpose National Identity Card
- Population pyramid : India Vs China, Demographic dividend Phase of India
- UN Population Report, India will become the most populous country by 2027
- Supreme Court upholds SC and ST (Prevention of Atrocities) Amendments Act
- Comparing Population Pyramids of India and China
- Waqf boards-Their governance and purpose
- Harvard Admissions Case
- Pradhan Mantri Jan Arogya Yojana- Ist Anniversary, Problems and solutions
- Significance of sexual and Reproductive Health-Status of reproductive services in India
- Pregnancy in Old Age, What is In Vitro Fertilisation-Risks and legal shortcomings
- Supreme Court Judgement on NGOs and RTI
- Social Stock Exchange
- Rajasthan Govt changes EWS norms, Sets Rs 8 lakh family income as only criteria
- Global hunger index 2019
- No Government job for those with more than two kids
- Ranitidine CANCER risk
- IIT Council Introduces Tenure track system
- Bangladesh growing faster than India ?
- Cyprus dispute explained
- Donald Trump impeachment
- India wins Hyderabad Nizam case against Pakistan
- India’s reply to Pakistan at UNGA
- Prime Minister of Malaysia calls India and invader in Kashmir
- Should India recognise the armenian genocide ?
- Why are CARICOM countries important for India ?
- Why are countries leaving OPEC ?
- Attacks on Saudi Oil facilities
- Organization of Islamic Cooperation issues statement on Jammu and Kashmir
- Sri Lanka’s relations with India & China
- US troops start pullout in Syria as Turkey prepares for operation
- What are Vanilla Islands?
- India-USA trade deal
- UNHCR Nansen Refugee Award-2019
- Modi – Xi Informal meet at Mamallapuram – Historic Chinese links
- India China informal summit in Tamil nadu
- Pakistan save from FATF blacklist till 2020
- USA blacklists China organisations over Uighur Muslim abuse
- Why is Chile burning ?
- Why is the Philippines important for India
- Xi jinping Nepal visit 2019 and impact on India
- India Pakistan Cross LOC Trade suspended, Should India revoke suspension?
- Protests in Lebanon
- Chennai to Vladivostok Sea Route
- End of baghdadi
- Indian government’s security advisory
- Indians no longer require Visa to visit Brazil
- Non Aligned Movement 2019 summit
- US backed Ceasefire between Turkey and Kurds
- Pakistan stops postal exchange with India
- China’s GDP growth slows to 6% slowest in 27 years
- Common Goods for Health project by WHO
- Turkey attack Kurds in Syria
- Behavioural Aspect of Farmer Suicide
- Is rural India really open defecation free ?
- Global Growth Slow Down
- Nobel Prize in Economics 2019
- Regional Comprehensive Economic Partnership
- SBI wrote off bad loans worth 76,000 crores
- Surge in Onion Price
- Agriculture Credit by RBI’s Internal Working Group
- What is Debt to GDP Ratio?
- Yes Bank Crisis
- Nobel prize in Literature – Controversy
- Boosting Indian Exports
- Sopore Fruit Mandi deserted
- What is Pink Collarisation?
- Mizoram to have Broad Gauge railway line by 2021
- Demand downturn in Indian Economy
- Payment facilitation fund
- Participatory Guarantee Scheme
- RBI’s 4th Bi-monthly Monetary Policy 2019-20
- Tourism restrictions lifted in Kashmir
- Link between Jobs, Farming, and Climate
- Draft Social Security Code 2019
- State Tax Revenues, SGST and Central Tax Devolution are likely to fall short
- Competitiveness Index 2019 by World Economic Forum
- NITI Aayog’s Water Resources Strategy
- BSNL and MTNL financial issues-DoT prepares Rs 74000 crore revival plan
- 20th Livestock Census
- India falls 10 ranks in World economic forum’s Global competitiveness index
- RBI stops Printing Rs 2000 Notes
- What is the Unified Approach proposal of OECD?
- FCI granaries overflowing
- India’s Economic Growth 2019
- Financial Sector Scams in India
- Labour Market of India
- New Strategic Disinvestment Process
- Payment Delays to Sugarcane Farmers
- Why India’s IMF Quota is not increased
- What is monetary policy Transmission? Why banks are not reducing interest
- Mahatma Gandhi’s theory of Economics
- India moves up 14 spots to 63 on world Bank ease of doing business index
- New amendments to the Motor Vehicles Act
- Power Sector Scenario in India
- Telecos to Pay Rs 96,642 crore to the Government
- Camel population declines in Rajasthan
- Merger of BSNL and MTNL
- World bank on Indian economy
Defence & Security
- Nagas Kukis Conflict, What is the cause of the latest tensions?
- Case against 50 Celebrities controversy
- Can Indian Government intercept WhatsApp?
- UP Government fires 25000 home guards, Is Yogi Government’s decision justified?
- NCRB’s Crime in India 2017 report
- Aadhaar Social Media mandatory linking case
- What is TechSagar? National repository of India’s cyber tech capabilities.
Science & Technology
- ISRO’S Project NETRA
- Facebook’s LIBRA Currency in trouble
- WHO launches first World report on Vision
- 2019 Nobel prize in physics
- 2019 Nobel prize in Physiology and Medicine
- Elon musk’s starlink project
- NASA’s ICON mission
- New King of the Moons in the Solar system is Saturn
- What Is Spectroscopy ?
- Quantum supremacy
- Climate Vulnerable Mapping Of India
- C40 Cities
- Gujarat Unveils emission trading scheme
- Forest Plus 2.0
- Himalayan States seeks Green Bonus
- India to Phase Out Single Use Plastic (SUP) by 2022
- Role of Volcanoes in Global Warming
- NH 766 ban controversy, Protests in Kerala against night traffic ban on the forest stretch
- Climate Change needs Global Solution
- Aarey Forest -2185 trees to be cut for Mumbai metro
- Government to build 1400 km long Green wall
- Graded Response Action Plan in Delhi
- Aerosol formation brightening clouds
- Anthrax outbreak in Pobitora Wildlife Sanctuary, Two affected buffaloes died
- Species in News from June to October 2019
- Climate Action Summit 2019
Tag:GS-3||Economy ||Structure of the Indian Economy ||National Income & it’s measures
What is the issue?
- Indian Economy is evidently witnessing a slowdown phase, with weak consumption demand being a factor.
- This is the weakest pace of the economy in more than 6 years.
What is the present economic scenario?
- 5% in the first quarter
- A worryingly persistent slowdown dragged the economic growth in India down to 5% in the first quarter of 2019-20.
- This is the weakest pace of the economy in more than 6 years.
- Private consumption expenditure
- Private consumption expenditure has decelerated so sharply that at 3.1%, the expansion is at an 18-quarter low.
- Notably, private consumption expenditure contributes more than half the GDP and is the mainstay of demand.
- Automobile sales slowdown
- Automobile sales continued to plunge in August 2019.
- It posted the worst drop since the Society of Indian Automobile Manufacturers (SIAM) started collating wholesale vehicle sales data in 1997-98.
- The absence of demand pervades almost every key sector – from consumer durables to biscuits and housing.
What contributed to the demand drought?
- Multiple factors have contributed to the demand drought
- Lack of jobs, or even where jobs are available, a limitation about the incomes from such work
- The long-lasting rural distress
- Widening inequality
- Even the RBI’s successful targeting of inflation
- Inflation– It is said that the RBI’s remit of containing consumer price index (CPI) based inflation within a 2-6% band may be proving less than ideal for India.
- This is especially the case if monetary policymakers are focused on pegging inflation at or less than 4%.
- Low inflation extracts costs in the form of lower nominal growth.
- This could crimp tax receipts and in turn, lead to cuts in government spending.
- Also, with wage increases most often linked to inflation, slower price gains would result in smaller annual increments.
- This would further leave the earners more wary of spending on discretionary or non-essential purchases.
- Rural distress
- The crisis of demand in the rural hinterland has worsened to the point where sellers of consumer goods have seen appreciable slowing in sales growth in recent quarters.
- Weak growth in rural income and moderation in rural infrastructure spending would lead to de-growth in tractor sales volume by 5-7% in 2019-20 fiscal.
What is the need now?
- Consumer sentimentis a key ingredient affecting consumption.
- It is vital for policymakers to address weakness in consumer sentiment through a mix of measures in the economic realm.
- Both monetary and fiscal measures are needed, as well as ensuring a congenial socio-political climate to enhance the ‘feel-good’ factor is essential.
- Monetary Policy
- Ensuring lower borrowing costs as well as adequate availability of credit is crucial.
- This would create an enabling environment for consumers to consider taking out loans to fund their purchases.
- Fiscal Policy
- Targeted tax breaks or non-tax sops that incentivize consumption is one option.
- The latest decision to cut baseline corporate tax ratesis certainly a good move, aimed at incentivizing and boosting capital investment.
- However, companies may be uncertain of investing when demand for their manufactured goods is still weak.
- It is therefore imperative that the revival of demand remains a key priority of any new policy measure.
- Rural demand
- As far as rural demandis concerned, the government must go beyond the PM-KISAN income supplementing scheme.
- It should tackle the crisis of low real farm incomes by radically recalibrating its approach to the agrarian economy.
- As an immediate and necessary measure, the Mahatma Gandhi National Rural Employment Guarantee Scheme needs to be reinvigorated.
- Ensuring timely and adequate funding and the fixing of appropriate wage levels are essential.
- Any economic stimulus package that the government may come up with would necessarily assume a short-term loosening of the fiscal deficit goals.
- If the stimulus also entails a large expenditure component, there could also be second-order inflationary consequences.
- However, the necessity to revive demand at a juncture when the economy is heading for a stall is high now.
- The Indian economy has huge potential, the current slowdown must be dealt with a bottom-up strategy, which may include boosting agriculture, food processing, tourism, MSME, automobiles, and pharmaceuticals.
Mains model questions
- Discuss the current economic slowdown being witnessed by the country. What are the underlying causes and what measures are needed to be taken to bounce back on the right growth trajectory? Explain.