Notes on the Contemporary Issues in the Indian Economy

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 8

Year of Publication : 2019

Authors : Shaleen Nath Tripathi, Anubhav Nath Tripathi

10.14445/23939125/IJEMS-V6I8P110

How to Cite?

Shaleen Nath Tripathi, Anubhav Nath Tripathi, "Notes on the Contemporary Issues in the Indian Economy," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 8, pp. 83-92, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I8P110

Abstract:

Background/Objective: The article discusses the prime causes for the growth and improvement in the standard of living, and the problems of inflation and unemployment, that also affect the quality of growth and provide ideas to solve them and make INDIA a preferred investment destination.
Methods: The study has used the theories or the theoretical method to inquire about the major challenges facing the Indian economy and put solutions to increase investment and growth, nonetheless a regression analysis to ascertain the relationship between the economic growth and variables like real wages, real interest rate and real exchange rate and others could not become possible due to lack of reliable data, which had made the paper more worthwhile.
Findings: INDIA is a hot-spot for global investor and even better among emerging markets due to its equanimity underscored by its reliance on domestic demand for growth, low global commodity price regime, because it is mainly an importer, its rate-cut-cycle. The idea to explore manufacturing and exports possibility with low wages compared to the peers, its high rate of population growth, a reservoir of labor and demand, low fiscal and current-account deficit and its pace of expansion and growth, both actual and potential, present best investment and business returns. However, regulations still constrain the ease of doing business. Nevertheless, INDIA has improved a lot on competitiveness in a recent rating-report and the government is conscious about problems of doing business, both foreign and domestic. The central-banks must try to control demand, when there is no scope of increasing supply of goods and services. Nevertheless, lower interest-rate might be good for the supply-side (investment) and the demand (consumption) side, too.
Application: If, lower interest-rate increases supply or productivity to lower inflation instead of just demand, it should be welcomed. Businesses employ people which is good for demand in the market through multiplier, which creates income and tax to improve human-lives. Notwithstanding, the burden of a large number of poor-people, also due to high population growth-rate and unskilled and unproductive labor-force could not be underestimated.

Keywords:

Agriculture, demand, exports, exchange rate, fiscal policy, monetary policy, prices, productivity, supply, skill-development, imports, interest rate, wages.

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