India is facing its worst economic slump in decades. Many industrialists have been sounding the warning bells for a while now, and recent statistics haven’t been encouraging either. In the second quarter of 2019, the GDP growth rate fell to 4.5 per cent—the lowest in the last 26 quarters. While a lower GDP hits the poor harder, the per capita income reduces proportionately. Salaries are stagnant and employee benefits have been drying up; investment levels are lower as people do not have enough money to spare; interests on low-return deposits have dropped; bank loans are hard to come by; new jobs are few and far between since unemployment at 6.1 per cent (2017-18) is at a 45-year high.
“The core sector that comprises coal, crude oil, natural gas, cement, fertilizers, electricity, steel, and refinery products is the backbone of the nation. This sector registered a contraction of 5.8 per cent in October 2019, the second consecutive contraction after -5.1 per cent in September 2019. In sharp contrast, the core sector registered a 4.8 per cent growth in October last year. A disappointing core sector performance is a sign of a slowdown in the economy,” says CS Sudheer, founder and CEO, IndianMoney.com, a personal finance advisory portal.
Sudheer also explains that India is currently undergoing growth recession. “During the phase, growth is slow for a few quarters but not negative to be called a technical recession. Growth recession is common across several countries, and is characterised by job contraction. The economy expands, but at a slower rate,” adds Sudheer.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE GOODNESS OF GHEE
What: The Pure Cow Ghee range for babies with sensitive skin from Himalaya Babycare
Hello Hyderabad!
The Kaftan Company makes its debut in Hyderabad with a physical store
A COSMIC CULINARY JOURNEY
Located in the vibrant heart of Kolkata, That Place Bowl & Bar aims to be something out of the ordinary
BIG ON THE SCREEN
Writer-director INDIRA DHAR is no newcomer to international film festivals, but a standing ovation at Cannes for her latest film was an unforgettable experience. She talks to Shraddha Kamdar about the inspiration, her love for films and more
COMMAND RESPECT EFFORTLESSLY
Try these strategies if you hate not being taken seriously.
FIND CALM IN CHAOS
Deal with difficult situations using the principles of stoicism.
GREENER IN THE CUP
Samiksha Bhowmik details why a cup of matcha needs to be part of your diet
THE BEST OF TWO VIBRANT WORLDS
LYLA, in Mumbai's BKC, seamlessly blends Central American vibrancy with Californian flair
A Melange Of the Middle East & Indian Spices
Bringing contemporary twists to tradition, MERCHANT & ME is a youthful urban space for cuisine and cocktails in Pune
10 REASONS WHY SEYCHELLES COULD BE YOUR DREAM DESTINATION
Seychelles hits all the high notes on the romance roster whether you're on honeymoon or a love break.