India is experiencing a weakening trade market. With decreasing sales in markets like: clothing, food and automobiles, the country's economy is in danger of low economic growth. This trend could also lead to job loss as the demand of goods and services can effect the job market in the long run. With a recent history of excessive lending, profits and returns were notably low. If things are to continue in this route, the economy may experience losses in the future.
India Economy Trade
This news as definitely shocking as India was once coined the fastest growing economy. After acknowledging the economic turmoil India is in, the Modi govt has announced reduced income taxes for all companies and incentives for manufacturers. I think the one huge aspect the government is missing out on completely is the farming sector! Rural farming is still a means of livelihood for a significant chunk of the population so I think if the government paid attention to that sector along with the corporate side, India could potentially get itself out of this financial and economic turmoil.
ReplyDeleteThis greatly surprises me as well. I wonder if the United States will look more to India now especially for technological goods now that we have a trade war going with China. I could India becoming a good substitute if the trade war continues.
ReplyDeleteAlthough bad for India, this downturn could make it very profitable for U.S. consumers. Especially if things are becoming much more expensive to import from China. India could be the profitable switch to import from.
ReplyDeleteWith the current US-Chinese trade war, it is reasonable to assume that the United States will continually look for more profitable trade partners, and, with these recent Indian economic measures, India may become a more suitable trade partner for American economic interests. If these economic shifts were to occur, we could see dramatic shifts in American economic policies and priorities in Asia.
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