GDP Growth rate | Challenges that Govt is facing to be a 5 trillion

Most of the companies have posted 3rd quarter results but still results does not give any hope about the future growth. Market has the fear of Coronavirus which has already been declared as global emergency by WHO. In such scenarios GDP growth rate must not be impacted.

Here are the major challenges that government needs to take care to pump up India GDP growth rate.

UNEMPLOYMENT

Unemployment is still remain one of the major challenge that government is facing to become a 5 trillion economy. Government have been showing Pakodawala, Chaiwala and other profession as the employment given by the government. Whether government has given those employment but they never going to contribute the economy with direct tax. Government need to improve direct tax collection and bring more and more people in the tax criteria with clean income. Even Pakodawala and Chaiwala will have more income and customer when more companies will give employment in India. Employment is one of the major challenge to improve GDP growth rate.

ECONOMIC SLOWDOWN

Economic slowdown is not just because of the global economic slowdown. In India demonetization and GST also played major role though it was a good step but still we are waiting to see the positive impact in economy. Government has already taken quite some steps to improve the economic situation such as corporate tax cut, optional new tax regime, banks merger and all. Government is also increasing the government spending but this will take time because government can spend all the money at once. Government can just create the policy and implement them over the time.

CORONAVIRUS IMPACT

Coronavirus outbreak just came out from nowhere and impacted global economic activities. Indian import is going to be 28% less due to coronavirus and this is going to impact the economy directly. So we can not expect major upside in the coming quarter. China is one of the economy in the world and the biggest exporter too. Due to coronavirus impact China is not able to export many of its supplies and this will impact the world economy.

BAD INDUSTRIAL RESULTS

Indian manufacturing industry is also not doing good. After the 3rd quarter results, we see that companies are still struggling to earn profit. Even the market giants have posted the mixed results. Investors are focused on the consumption based themes and picking quality stocks because in this situation where every time when we see end of this bear market a new challenge comes and push the market downside.

INDIAN BANKS WITH DECREASED ASSET QUALITY

Many major banks are suffering from the reduced asset quality. This quarter result shows that the asset quality is reduced, and there is fear that these banks can post increase in NPA in next quarter results. Some banks have improved the asset quality but still not in majority. India to become a 5 trillion economy and to improve GDP growth rate banks needs to do better.

Indian GDP growth rate has become crucial when population increasing rapidly and in some time its going to be on top with more than 150 crore people. These challenges must be taken care of as early as possible.

Also read my other article about the gdp growth

https://trueway-blog.com/indian-gdp-growth-is-4-5-for-jul-sept-quarter-what-to-do/

Top 5 Fantasy Netflix series to watch
It is very difficult to categorize and choose top 5 fantasy netflix …
Top 5 Trading Partners of India
India is a developing market economy and it has the potential to …
Inspirational Quotes from Peter Lynch
Peter Lynch is an American investor and fund manager of Fidelity Magellan …
Missing big returns on short term stock trades
This is the time when market volatile and stocks are giving moves …
Where to invest in this economic disruption
Equity mutual funds are down almost 20-30% from last high. Most people …
Yoga to fight Coronavirus symptoms
Coronavirus (Covid-19) has already been declared pandemic. Protection is the only way …
Manali trip and Tourist places
This article is focused on how you can plan a trip to …
Biggest fall in stock market after 11 years
Nifty has fall more than 7% in just one week and almost …
Swami Vivekanand inspirational quotes
Swami Vivekanand (an Indian Monk) was born on 12 January 1863, Kolkata. His …
Budget 20-21 : new tax regime tax calculation
Today everyone was looking something that someone can get out of this …
Learn HTML in 10 basic steps
HTML stands for Hyper Text Mark Up language. This is the main …
Siberian Husky Dog breed
Siberian Huskies have the wolf like face. They are an active, energetic, …
German Shepherd Dog Breed
German Shepherd dogs breed German Shepherd dogs are brightest, easy to socialize, …
Encryption and Decryption of a string using AES in C#
AES is a symmetric block cipher algorithm. A private key is used …
How to recover stock market losses
Hey guys welcome back to my posts. Today I will discuss how …
Is it right time to invest in stock market ? Let’s see
Is it right time to invest in stock market ? Every one …
Indian GDP is 4.5% for Jul-Sept Quarter. What to do.
GDP growth has fallen consecutively from 8.2% (2016-17) to 4.5%(2019-20) QoQ. But …
Rottweiler Dogs are best for guarding and herding but they are more of a good friend.
Training is the key for every pet to stop them being dangerous. …
How to create an investment portfolio
Hello Investors !! How are you guys? We all know a portfolio …
How to make money from share market
Even you know everything about the share market but still it is …

Leave a Reply

Your email address will not be published.